Dogecoin (DOGE) saw a sharp price spike on Tuesday, rising to nearly $0.42, following Bitcoin’s record-breaking surge past $94,000. The rally was short-lived, as DOGE later dipped back to around $0.39, continuing the coin’s characteristic price volatility. The rapid fluctuations resulted in significant liquidations for futures traders, particularly those betting against DOGE.

Within just four hours, over $6 million worth of short positions on Dogecoin were liquidated, as per data from CoinGlass. Long positions were also hit, with around $5.6 million liquidated during the same timeframe. In total, approximately $25.5 million in DOGE futures positions were closed for 24 hours, with $14.7 million coming from short sellers. Notably, one trader reportedly lost $1.05 million in a short position during this period.

The price surge in Dogecoin aligns with Bitcoin’s continued upward momentum, which reached an all-time high of $94,000 earlier in the day. While Bitcoin’s record price certainly contributed to the broader market rally, Dogecoin’s price movement was particularly noteworthy, as it demonstrated substantial volatility despite the general bullish trend.

Dogecoin’s popularity has grown significantly over the years, partly due to the support of Tesla CEO Elon Musk, who has been vocal about his affinity for the cryptocurrency since 2019. Musk's influence and frequent social media mentions have helped fuel speculation and trading activity, further boosting DOGE’s profile in the market.

The latest price fluctuations in Dogecoin underscore its volatility, as well as the risks associated with futures trading in the cryptocurrency market. Despite recent gains, the asset remains prone to sharp swings, with traders facing potential liquidations when market conditions shift rapidly.