Bitcoin price news: BTC hits $68,500; ETH, DOGE, SOL lead amid crypto short squeeze

CoinDesk

by Krisztian Sandor

February 25, 2026

AI-Generated Deep Dive Summary

Bitcoin prices surged above $68,500, marking a strong rebound amid a crypto market short squeeze. The rally was driven by a sharp reversal in sentiment, with altcoins like Ethereum, Solana, Dogecoin, and Chainlink leading gains of over 10%. This upward movement came after weeks of extreme bearish positioning, as evidenced by negative futures funding rates and historic lows on the Crypto Fear & Greed Index. The rebound has liquidated nearly $400 million in leveraged bearish bets, signaling a shift from fear to cautious optimism. The rally was fueled by improving risk appetite in traditional markets, with the S&P 500 and Nasdaq showing gains alongside tech sectors. Crypto-related stocks also joined the momentum, with Circle and Coinbase leading advancements of 29% and 13%, respectively. This upward movement reflects a broader shift in institutional sentiment, as short interest on these stocks had become increasingly concentrated. The return of U.S. buyers, evidenced by the Coinbase Premium Index turning positive for the first time in over 40 days, further underscores this trend. The rally also highlights the interconnectedness between crypto and traditional markets. While Bitcoin has faced headwinds this year, including a 25% decline, the rebound suggests renewed risk-on sentiment among investors. The inflow of $257.7 million into U.S. spot Bitcoin ETFs on Tuesday, the largest since February 6, signals growing institutional participation. Additionally, the MSTR to IBIT ratio indicates that Bitcoin-focused firms like Strategy are outperforming broader market benchmarks. This bounce could be a turning point for the crypto market, as deeply bearish setups often precede sharp upward movements. The unwinding of short positions and improving sentiment have created a favorable environment for altcoins and crypto-related stocks. Investors should monitor whether this rally gains momentum or if it remains a temporary respite from prolonged bearishness. For readers interested in crypto, this development underscores the importance of market sentiment and institutional dynamics in shaping price movements. The rebound also highlights the potential risks and rewards of leveraged trading and short selling in volatile markets. As the market continues to evolve, staying attuned to macroeconomic trends and institutional investor behavior will be key for informed decision-making.

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Originally published on CoinDesk on 2/25/2026