This Altcoin Surged 15%, Outpacing Bitcoin: What Does the Rally Depend On?
Dogecoin outpaced major cryptocurrencies with a gain of more than 15%, while slowing short liquidations in the market put new buyer demand at the forefront for the rally to continue.
According to CoinDesk data from the morning hours of the Asian session on Tuesday, September 22, Dogecoin (DOGE) climbed above $0.10 and recorded the strongest gain among major tokens. During the same period, Bitcoin (BTC) gained approximately 5% over the past 24 hours, trading just above $85,600.
DOGE’s gain also outpaced Bitcoin and other major altcoins. XRP rose 7% to approach $1.52, while Solana gained 5% and traded just below $117. Ethereum gained approximately 3%, approaching $2,740. BNB and TRX rose between 1% and 2%, while Zcash stood out negatively among the major tokens compared in the report, falling 4%.
Forced buying slowed, focus turns to new demand
According to CoinDesk’s assessment, a significant portion of Bitcoin’s rise was driven by the forced closures of investors who had taken bearish positions. As the price rises, liquidating short positions can fuel the rally by requiring purchases to close those trades.
However, the liquidation total over the past hour fell below $11 million, according to the source. At the busiest point of Monday’s move, that figure was above $300 million. CoinDesk states that as the support provided by forced closures declines, the next phase of the rally will depend on new buyer demand. This does not mean the rally has ended, but rather that the nature of the demand carrying it has become more important.
Most of the $1 billion in liquidations came from short positions
According to CoinGlass data cited in the report, slightly more than $1 billion in positions were liquidated across the crypto market over the past 24 hours. Of that amount, $844 million, or approximately 82%, came from short positions. Approximately 135,000 investors were affected by the liquidations.
Total liquidations in Bitcoin trades amounted to approximately $608 million, while liquidations in Ethereum trades totaled $181 million. A Bitcoin position worth approximately $21 million on Hyperliquid was the largest single liquidation of the period.
The crypto rally was accompanied by increased risk appetite in Asian stocks during the same hours. Led by chipmakers, the MSCI Asia-Pacific Index rose approximately 1%, while South Korea’s Kospi index gained 2%.