Bitcoin climbed back to around 67,500 on Wednesday, rising more than 5 percent over 24 hours and triggering a broad based recovery across the digital asset market. The rebound follows weeks of heavy selling pressure and deeply negative sentiment that had left traders positioned for further downside.
Major altcoins posted even stronger gains. Ethereum advanced about 10 percent and reclaimed the 2,000 level for the first time in over a week. Solana, Dogecoin, Cardano and Chainlink each rallied around 10 percent or more, outperforming bitcoin during the session. The synchronized move higher reflected a wider relief rally rather than isolated token specific developments.
The surge coincided with a sharp unwind in leveraged bearish positions. Data from derivatives markets showed that more than 307 million dollars in short positions were liquidated within 24 hours as prices accelerated upward. Funding rates on perpetual futures had been negative in recent weeks, indicating that short sellers were paying to maintain their positions. Such conditions often create the foundation for short squeezes when price momentum shifts.
Despite the rally, bitcoin perpetual funding rates remain near neutral to slightly negative, suggesting the move has not yet been driven by aggressive leveraged speculation. Analysts note that this dynamic could point to a more spot driven recovery rather than a purely derivatives fueled spike.
Sentiment indicators had been flashing caution throughout February. The widely tracked Crypto Fear and Greed Index hovered in extreme fear territory for much of the month, reflecting sustained risk aversion among traders. The current bounce has begun to stabilize that outlook, though positioning data indicates caution has not fully cleared.
Crypto related equities moved higher alongside digital assets. Shares of Circle rallied sharply following stronger than expected earnings, while Coinbase, Strategy and Galaxy posted mid single digit gains. Bitcoin mining companies including Bitfarms, Bitdeer and MARA Holdings also extended recent advances. Many of these stocks had built elevated short interest, leaving them sensitive to rapid upside reversals.
Traditional markets provided a supportive backdrop. The S and P 500 and Nasdaq 100 both traded higher during the session, and technology focused exchange traded funds extended gains as investor appetite for growth assets improved.
There are also early signs of renewed US participation. The Coinbase Premium Index turned positive for the first time in more than 40 days, indicating that bitcoin prices on the US based exchange were trading at a premium to global averages. US spot bitcoin exchange traded funds recorded roughly 257.7 million dollars in inflows on Tuesday, marking the strongest single day of subscriptions since early February.
