Bitcoin soared to $68,310.0 (+5.46%), Ethereum broke through the psychological $2,000 mark, and Solana climbed 6.50% to $81.994, triggering a massive $1.22 billion cascade of short-position liquidations across the crypto market in just one hour.
Domino effect: How the short squeeze linked AI and Bitcoin
This powerful surge caught the bears off guard. Sellers betting on a decline were simply washed away: over the past 24 hours, exchanges forcibly closed the positions of 111,060 traders worth $1.46 billion.
However, the most severe blow came during that extraordinary hour, when trading systems liquidated $1.22 billion in short positions at once.
Bitcoin accounted for $678.11 million in liquidations, Ethereum for $423.44 million, while Solana sellers lost $37.97 million. This mass stop-out acted as rocket fuel: exchanges began forcibly buying back short sellers' positions, causing prices to rise vertically.
In his view, "Bitcoin benefits from AI" because, to support the massive infrastructure boom surrounding neural networks, governments are being forced to artificially contain bond market volatility through "volatility suppression."
This fuels hidden inflation, accelerates the depreciation of fiat currencies and, over the long term, turns Bitcoin into the primary safety valve for investors.
This fundamental strength of the crypto market is also supported by Fundstrat's Tom Lee. He fully agreed with Robinhood CEO Vlad Tenev, emphasizing that the industry is on the verge of a massive process that will effectively absorb the old system: "we are in the early innings of a global tokenization supercycle."
According to Lee, moving traditional finance onto blockchain rails will become a key structural driver of long-term crypto growth, alongside the development of autonomous AI agents.
