Crypto Rally Ignites: Bitcoin Smashes $68,500, ETH, DOGE, SOL Crush Shorts in Epic Squeeze

Crypto Rally Ignites: Bitcoin Leads Charge Past $68,500 as Shorts Get Squeezed

Bitcoin has made a stunning comeback. After dipping low earlier in the week, Bitcoin (BTC) surged past $68,500 in Wednesday’s U.S. trading session. This marks a strong gain of over 6% in just 24 hours. The rally signals the end of heavy bearish bets in the crypto market.

Altcoins Outshine Bitcoin: ETH Reclaims $2,000, DOGE and SOL Soar Over 10%

The Bitcoin bounce kicked off a wider rally across altcoins. Ethereum (ETH) jumped 10%, breaking back above the key $2,000 mark for the first time in a week. Other top performers included:

• Solana (SOL): Up more than 10%
• Dogecoin (DOGE) at $0.09290: Surged over 10%
• Cardano (ADA) at $0.2663: Gained more than 10%
• Chainlink (LINK) at $8.4681: Climbed over 10%

These altcoins beat Bitcoin’s gains and outperformed the CoinDesk 20 Index, showing broad market strength.

From Fear to Relief: What Sparked the Surge?

Bitcoin’s price had fallen below $63,000 early in the week amid extreme fear. The Crypto Fear & Greed Index stayed in ‘Extreme Fear’ territory for most of February. Traders were very pessimistic.

Perpetual futures funding rates turned negative several times. This means short sellers paid long traders to hold positions. Crowded short bets like this often lead to sharp upward squeezes when prices start rising.

The rebound wiped out nearly $400 million in short positions across crypto derivatives in 24 hours, per CoinGlass data. Yet, Bitcoin funding rates are still below neutral, hinting this rally is not fueled by wild leverage.

Crypto Stocks Join the Party: Circle Up 29%, Coinbase Gains 13%

Crypto-linked stocks exploded higher too. Stablecoin firm Circle (CRCL) soared 29% after beating earnings expectations. Coinbase (COIN) rose 13%. Bitcoin holder MicroStrategy (MSTR) and Galaxy Digital (GLXY) each gained 7-8%.

Bitcoin miners, now linked to AI trends, trailed slightly but still rose. Bitfarms (BITF) and MARA Holdings (MARA) posted 6-7% gains.

Experts like Markus Thielen from 10x Research point out high short interest from hedge funds on these stocks. This setup primed them for a fast reversal.

Traditional Markets Boost Crypto Mood

Risk appetite improved in stock markets, aiding the crypto surge. The S&P 500 climbed 0.7%, and Nasdaq 100 rose 1.2% early in the session. Tech software stocks, hit by AI worries, gained more with the iShares Expanded Tech-Software ETF (IGV) up 2%.

Key Indicators Flash Green: Coinbase Premium Turns Positive

After over 40 days, the Coinbase Premium Index flipped positive. It measures Bitcoin’s price gap on U.S. exchange Coinbase versus global averages. This signals fresh U.S. capital inflows, more institutional buying, and better sentiment.

MicroStrategy’s (MSTR) performance versus BlackRock’s IBIT ETF is up 12% year-to-date. This shows strong risk appetite despite Bitcoin’s 25% yearly drop.

U.S. spot Bitcoin ETFs saw $257.7 million in inflows Tuesday—the biggest since February 6. This steady buying supports the rally.

Nvidia Earnings Supercharge AI-Crypto Link

Nvidia’s strong results added fuel. The AI leader reported $68 billion in quarterly revenue and forecasts $78 billion next quarter. This lifted AI-tied crypto stocks and miners, blending tech and crypto trends.

Why This Short Squeeze Matters for Crypto Traders

Short squeezes like this ETH, DOGE, SOL rally happen when too many traders bet against prices. A small price uptick forces shorts to buy back, pushing prices higher fast. With negative funding and fear levels, the market was ripe for it.

But caution remains. Funding rates are low, so no overheat yet. Watch for sustained ETF inflows and stock market strength to see if this holds.

What’s Next for Bitcoin and Altcoins?

The move erases early-week losses. If risk stays on, Bitcoin could test higher levels. Altcoins like ETH at $2,000 and DOGE may keep leading if sentiment improves.

Traders should track Fear & Greed Index, funding rates, and ETF flows. Positive Coinbase Premium suggests U.S. buyers are back.

This rally shows crypto’s quick mood swings. From extreme fear to squeeze relief in days. Stay tuned for more Bitcoin price news.

Prices updated as of late February trading. Crypto markets move fast—always do your own research.

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