Crypto Rally Ignites: as ETH, DOGE, SOL Crush Shorts in Massive Squeeze

In a stunning turnaround, has surged back to around $67,500, marking a strong 5% gain in just 24 hours. This rebound during Wednesday’s U.S. morning session signals the end of deep bearish pressure in the crypto market. What started as a Bitcoin bounce has turned into a full-blown relief rally, with top altcoins like , , and leading the charge and outperforming the king coin itself.

Bitcoin’s Big Bounce: From Fear to Relief

Bitcoin (BTC), currently trading near $68,617 at peaks, hit $67,500 after weeks of pain. The Crypto Fear & Greed Index stayed stuck in “Extreme Fear” territory for most of February, showing how pessimistic traders had become. But now, that fear is flipping to hope.

Why the sudden shift? Crowded short positions. Perpetual futures funding rates – those small payments shorts pay longs to keep bets open – went negative several times recently. This overcrowding made the market ripe for a . When prices ticked up, shorts got forced out, fueling the rally higher.

Over $307 million in leveraged short bets got wiped out in the last 24 hours, according to data trackers. Yet, Bitcoin’s funding rates are still below neutral, meaning this isn’t wild speculation driving the move. It’s more like genuine relief buying.

Altcoins Steal the Show: ETH Reclaims $2,000, DOGE and SOL Soar Over 10%

Bitcoin’s gain lit a fire under altcoins. jumped 10%, breaking back above $2,000 for the first time in a week. This key level acts like a psychological barrier – crossing it boosts confidence.

• Solana (SOL): Up more than 10%, showing strength in high-speed blockchains.
• Dogecoin (DOGE): Hit $0.09290, surging over 10% on meme coin hype.
• Cardano (ADA): Climbed to $0.2663, another 10% winner.
• Chainlink (LINK): Reached $9.4421, outperforming with oracle network buzz.

These gains beat Bitcoin and the CoinDesk 20 Index, proving altcoins can lead when sentiment flips.

Short Squeeze Mechanics: How Bear Traps Turn into Bull Runs

A happens when too many traders bet on falling prices. As prices rise even a bit, shorts must buy back to cover losses, pushing prices higher in a loop. Negative funding rates were the red flag here. Experts like those at 10x Research pointed out heavy short interest on crypto stocks too, setting up perfect reversal conditions.

This isn’t new – remember past squeezes that sent BTC to all-time highs? Today’s action feels similar, but calmer without extreme leverage.

Crypto Stocks Join the Party: Circle Up 20%, Miners Rebound

The rally spread to stocks. Stablecoin giant Circle (CRCL) soared 20% on strong earnings. Coinbase (COIN), MicroStrategy (MSTR) – the Bitcoin treasury play – and Galaxy (GLXY) each rose 5-6%.

Bitcoin miners, now linked to AI data centers, kept climbing:

• Bitfarms (BITF)
• Bitdeer (BTDR)
• MARA Holdings (MARA)

Hedge funds had piled into shorts on these names, making them prime for squeezes.

Traditional Markets Cheer: S&P, Nasdaq, and Tech Software Up

Risk appetite is back in stocks too. The S&P 500 gained 0.6%, Nasdaq 100 rose 1.1%. Even software stocks, hit by AI worries, bounced via the iShares Expanded Tech-Software ETF (IGV) up 2%.

This broad risk-on mood supports crypto’s move. When Wall Street buys dips, Bitcoin follows.

Key Indicators Flash Green: Coinbase Premium Turns Positive

After 40+ days in the red, the Coinbase Premium Index flipped positive. It measures BTC price on U.S. exchange Coinbase vs. global average – a sign of U.S. institutional buying and fresh capital.

MicroStrategy (MSTR) outperformed BlackRock’s IBIT ETF by 12% year-to-date, despite BTC down 25% YTD. This shows smart money still loves leveraged Bitcoin plays.

Spot Bitcoin ETFs saw $257.7 million inflows Tuesday – biggest since Feb 6. Institutions are dipping back in.

XRP’s Surprise Jump: 6% Gain on Institutional Buying Signals

Not to miss out, XRP rose 6% after breaking $1.37. Exchange data shows strong spot demand from institutions and retail. ETF talks and accumulation hint at a bigger shift for Ripple’s token.

What’s Next for Bitcoin and Crypto? Bullish Signs Build

This surge to $67K could be the start of something bigger. With fear easing, liquidations done, and inflows rising, momentum looks positive. Watch funding rates – if they stay neutral, the rally has legs. Altcoins like ETH, SOL, DOGE could keep outperforming if Bitcoin holds $67K.

Traders should eye traditional markets for clues. More Nasdaq gains? Expect crypto to tag along. But remember, crypto is volatile – squeezes can reverse fast.

Stay tuned for more , updates, and analysis. The market’s heating up!

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