A massive short squeeze liquidated $400M in bearish bets, sending Bitcoin above $68,500 and triggering broad altcoin gains led by Polkadot.
Nearly $400 million in leveraged short positions were wiped out in the past 24 hours, triggering the sharpest crypto rally since early February and sending altcoins on a tear.
Bitcoin jumped more than 6% to reclaim $68,500 on February 26, snapping a multi-day slide that had taken it as low as $63,000 earlier in the week. The move triggered a cascade of short liquidations totaling roughly $400 million across major exchanges.
Polkadot led the altcoin charge with gains exceeding 24%, climbing above $1.58 in its strongest single-day rally in months. Trading volume spiked to over $700 million, representing about 25% of DOT's market cap. Ethereum reclaimed the $2,000 level with a bounce of roughly 8%, while SOL, DOGE, and ADA also posted significant gains.
The Altcoin Season Index climbed to 35, up several points from the previous week, signaling a rotation into higher-beta tokens as forced selling from February's crash begins to clear.
The rally emerged from deeply oversold conditions following Trump's February 23 announcement of a 15% global tariff hike, which had pushed crypto and equities into a sharp selloff. The Crypto Fear and Greed Index hit 11, one of its lowest readings ever, creating conditions for a violent squeeze.
Spot Bitcoin ETFs recorded their strongest net inflows since early February, with roughly $258 million flowing in on February 24. The Coinbase Premium Index turned positive for the first time in over a month, both signaling renewed U.S. institutional buying interest.
For Polkadot specifically, the breakout above the 30-day moving average at $1.43 was a key technical trigger, with momentum amplified by anticipation around a March 14 halving event that will cut DOT issuance by roughly 50%.
Bitcoin faces its next major test at $70,000, a level that analysts say will determine whether this rally has staying power or remains a temporary bounce. Thinner liquidity conditions mean the advance could reverse as quickly as it began. Trump's upcoming congressional address may inject fresh tariff-related volatility. The Clarity Act timeline, stablecoin flows, and whether ETF inflows sustain through the rest of the week will all be critical signals.
This is a developing story. The short squeeze provided relief, but the broader market structure remains fragile after February's crash. Whether this marks a turning point or just a bear market bounce will depend on follow-through from institutional buyers and macro clarity in the days ahead.
Wall Street giant Citigroup projects Bitcoin could reach $143,000 within 12 months, citing ETF demand and regulatory tailwinds as key catalysts.
The largest US bank is assessing spot and derivatives trading services as regulatory clarity enables traditional finance to deepen crypto involvement.
All 12 U.S. spot Bitcoin ETFs saw positive inflows on March 2, totaling $458M as BTC rebounds from February lows.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
