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UAE Accumulates $900M in Bitcoin as $736M Shorts Liquidated

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TLDR:

  • UAE reportedly holds over $900 million in Bitcoin during recent market weakness.
  • $736 million in Bitcoin shorts were liquidated in a single trading move.
  • The event marked the largest short squeeze since September 2024.
  • Crowded bearish positioning created rapid forced buying pressure.

 

Bitcoin markets shifted sharply as fresh capital and forced liquidations changed positioning across exchanges. The United Arab Emirates now holds over $900 million worth of Bitcoin, while roughly $736 million in short positions were liquidated in a single move.

UAE Expands Bitcoin Holdings as Market Reprices Risk

A post by Vivek Sen stated that the UAE now owns over $900 million worth of Bitcoin. The post framed the purchase as oil capital moving into digital assets during market weakness.

The timing of the reported accumulation aligns with broader volatility in crypto markets. Bitcoin had faced sustained pressure as derivatives traders leaned bearish. However, sovereign-level exposure signals continued institutional interest despite short-term uncertainty.

The UAE’s reported holdings reflect a growing trend among capital-rich regions seeking digital asset exposure. While price action remained constrained, accumulation during dips often indicates long-term positioning rather than short-term speculation.

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Moreover, this development comes as global liquidity conditions fluctuate. Therefore, sovereign participation adds a structural layer to market demand. It also reinforces Bitcoin’s position as a macro-sensitive asset.

Although the tweet did not provide acquisition timelines, the reported figure places the UAE among notable state-level holders. As a result, market participants are watching closely for further confirmation or expansion of such holdings.

$736M Short Liquidation Triggers Forced Buying

CryptosRus reported that $736 million in Bitcoin shorts were liquidated in one move. The post described it as the largest short liquidation event since September 20, 2024, when liquidations reached about $773 million.

Notably, the price move that triggered the liquidations was not extreme. This suggests bearish positioning had become crowded across derivatives markets. Funding rates had skewed toward shorts, indicating traders were leaning heavily against price recovery.

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When short positions are liquidated, exchanges automatically buy back Bitcoin to close those trades. This creates forced demand, often pushing prices higher in a reflexive cycle. As more shorts close, upward pressure can accelerate quickly.

According to the post, derivatives traders had weighed on price while spot demand remained muted. However, once liquidity shifts, crowded positions tend to unwind rapidly. That dynamic can change short-term momentum within hours.

The latest liquidation wave highlights the sensitivity of Bitcoin to positioning imbalances. Even moderate spot demand can amplify price moves when derivatives exposure becomes stretched.

Together, sovereign accumulation and forced short covering have altered the near-term market structure. While volatility persists, positioning data now reflects a market recalibrating after heavy bearish exposure.

 

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Crypto World

Alabama Passes DUNA Act Granting DAOs Legal Status

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Law, DAO

The US state of Alabama has become the second US jurisdiction after Wyoming to grant decentralized autonomous organizations (DAOs) legal status under the DUNA Act.

The Decentralized Unincorporated Nonprofit Association (DUNA) Act (Senate Bill 277) was introduced in February by Republican Senator Lance Bell. The House passed it 82-7 with 16 abstentions on March 17, and has now been signed by Alabama Governor Kay Ivey, according to a16z Crypto.

Speaking about the bill’s passage, a16z Crypto’s head of policy and general counsel, Miles Jennings, said on Wednesday that “decentralized governance is essential to crypto’s future — it’s one of the core constructs in market structure legislation.”

The bill provides legal status and limited liability protections to DAOs, solving a long-unresolved question in crypto: How DAOs exist from a legal standpoint in the real world. 

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It gives decentralized communities “the certainty to build, govern, contract, and scale in the real world,” added Jennings. 

Full legal entity status for DAOs

To qualify, a DAO must have at least 100 members joined for a common nonprofit purpose, such as governing a blockchain network or smart contract system.

Governance can operate entirely through blockchain technology and smart contracts, and voting, proposals and consensus mechanisms can all be stored onchain.

These organizations will have full legal entity status, they can own property, sue and be sued, and enter into contracts, while individual members and administrators will be shielded from personal liability. 

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Related: Aave DAO backs V4 mainnet plan in near-unanimous vote

“As federal crypto market structure legislation moves closer to becoming law, builders need effective domestic legal structures,” added Jennings. 

West Virginia DUNA Act awaits approval 

A similar DUNA bill (HB 5060), introduced by Representative Tristan Leavitt in February, passed the House on March 4 and is awaiting the governor’s signature in West Virginia. 

Wyoming’s DUNA Act was signed into law by Governor Mark Gordon in March 2024. The state approved the first legally recognized DAO in the United States in July 2021. 

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Over 13,000 DAOs exist worldwide with collective treasury assets under DAO control surpassing $24.5 billion as of 2025, according to CoinLaw. The average DAO treasury size is around $1.2 million, and Ethereum and its layer-2 networks host over 85% of DAOs, reported PatentPC in March.

Law, DAO
DAO treasury composition. Source: CoinLaw

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