The cryptocurrency market extended gains for a third day, with $1.24 billion of short positions liquidated over the past 24 hours. U.Today, a blockchain media outlet, reported on Aug. 21 (local time) that Dogecoin rose 10.11 percent over 24 hours to $0.0842 and is up 21.33 percent over the past week.

Dogecoin climbed from a low of $0.069 on Aug. 19 to an intraday high of $0.0857, extending gains for a third straight session. XRP rose 24 percent in a day, while Zcash and Bitcoin Cash gained 18 percent and 21 percent, respectively.

Amid the sharp rise, a Dogecoin community figure, Mishaboar, urged market participants to stay alert. He said it was welcome to see the market move in a different direction, but that extreme caution was needed.

Mishaboar said he would not place much trust in the recent rally being linked to a "high-profile cryptocurrency conference". Executives from Coinbase, Gemini, Ripple and Chainlink attended a White House event on Aug. 20, and the cryptocurrency market rose afterward.

Cryptocurrencies also rose alongside tangible assets such as gold, while the dollar weakened against major currencies. The U.S. Treasury is expected to double the size of long-term bond buybacks to at least $4 billion per operation through early November. The move is seen as having stoked bullish market sentiment, while short liquidations are viewed as adding further momentum to the rally.

The rise has drawn attention because it was not explained solely by factors specific to individual cryptocurrencies. With macro variables and short liquidations working together, prices moved quickly and the market has entered a phase of checking whether signs of overheating are emerging.