Bitcoin Rockets Above $68,500: ETH, DOGE, SOL Dominate in Massive Crypto Short Squeeze

Bitcoin has made a stunning comeback, smashing past the mark during Wednesday’s U.S. trading session. BTC jumped more than 6% in the last 24 hours, wiping out early-week losses that dragged it below $63,000. This surge signals the start of a broader relief rally in the crypto market, driven by a powerful short squeeze.

What Sparked the ?

The crypto market was drowning in bearish bets. Traders piled into short positions, betting prices would fall further. But when Bitcoin started climbing, it triggered a chain reaction. Short sellers had to buy back BTC to cover their losses, pushing prices even higher.

Sentiment was at rock bottom. The Crypto Fear & Greed Index stayed in “Extreme Fear” territory for most of February. Perpetual futures funding rates flipped negative several times, meaning shorts paid longs to keep positions open. This crowded setup made the market ripe for a squeeze.

Over the past 24 hours, nearly $400 million in leveraged short bets got wiped out across crypto derivatives, according to data trackers. Yet, Bitcoin’s funding rates are still below neutral, showing this rally isn’t fueled by wild speculation—it’s more organic.

Altcoins Steal the Show: ETH, DOGE, SOL Surge Ahead

While Bitcoin led the charge, altcoins outperformed. Ethereum (ETH) rocketed 10%, breaking back above $2,000 for the first time in a week. Solana (SOL), Dogecoin (DOGE) at around $0.093, Cardano (ADA) near $0.266, and Chainlink (LINK) at $8.47 each gained over 10%.

These gains beat Bitcoin and the CoinDesk 20 Index. It’s a classic sign of risk-on mode, where smaller coins amplify the upside during relief rallies.

• ETH: +10%, reclaims $2,000
• SOL: +10%+
• DOGE: +10%+, hits $0.093
• ADA: +10%+, nears $0.266
• LINK: +10%+, at $8.47

Crypto Stocks Ride the Wave

The excitement spilled into stocks. Circle (CRCL), the stablecoin giant, soared 29% after beating earnings expectations. Coinbase (COIN) climbed 13%. MicroStrategy (MSTR), famous for its Bitcoin treasury, and Galaxy Digital (GLXY) rose 7-8%.

Even Bitcoin miners, now linked to AI data centers, joined in. Bitfarms (BITF) and MARA Holdings (MARA) gained 6-7%. Hedge funds had loaded up short positions on these names, setting the stage for sharp reversals, as noted by market watchers.

Traditional Markets Provide Tailwinds

Risk appetite is back across finance. The S&P 500 rose 0.7%, Nasdaq 100 gained 1.2%. Tech software stocks, hit by AI worries, bounced with the iShares Expanded Tech-Software ETF (IGV) up 2%.

Nvidia’s earnings crushed expectations, reporting $68 billion in revenue last quarter and forecasting $78 billion next. This lifted AI-themed crypto plays, blending tech hype with blockchain.

Key Indicators Flash Green

After over 40 days, the Coinbase Premium Index turned positive. It measures BTC price on Coinbase vs. global average, signaling U.S. investor inflows and institutional buying.

MicroStrategy’s MSTR outperformed BlackRock’s IBIT ETF by 12% year-to-date, despite BTC down 25% YTD. U.S. spot Bitcoin ETFs saw $257.7 million inflows Tuesday—the biggest since Feb 6.

Understanding Short Squeezes: A Simple Guide

A short squeeze happens when short sellers bet against an asset. If the price rises, they face losses and must buy to exit, driving prices up more. In crypto, high leverage amplifies this—$400M liquidations prove it.

Why now? Extreme fear created overcrowded shorts. Improving stocks and ETF flows added fuel.

What Does This Mean for Crypto Investors?

This bounce erases early-week pain but doesn’t guarantee a bull run. Watch funding rates, ETF flows, and macro news like Fed rates. Bitcoin holding above $68,000 could target $70K; a drop below $65K might test supports.

Altcoins like shine in rallies but fall harder. Diversify, use stop-losses, and avoid over-leverage.

The Nvidia boost ties crypto to AI growth. Miners pivoting to AI could see more upside if tech rallies continue.

Looking Ahead: Bullish Signals Building?

Positive Coinbase premium and ETF inflows hint at U.S. capital returning. If traditional markets stay strong, crypto could extend gains. But volatility rules—stay alert.

Bitcoin’s resilience amid YTD losses shows long-term faith. With shorts squeezed, the path of least resistance is up, at least short-term.

Prices updated as of late Wednesday. Crypto markets move fast—always check live data.

Final Thoughts

The led by and stars like ETH, DOGE, SOL marks a turning point. From extreme fear to relief rally, it’s a reminder of crypto’s wild swings. Whether this sparks a bigger bull market remains to be seen, but momentum is shifting.