Bitcoin surged past $67,500 on Wednesday, marking a more than 5% gain in 24 hours as deeply bearish sentiment across the crypto market began to unwind. This rebound sparked a broader rally in altcoins, with Ether reclaiming the $2,000 level and Solana, Dogecoin, Cardano, and Chainlink advancing over 10%.
The market had been dominated by extreme fear for most of February, according to the Crypto Fear & Greed Index. Perpetual futures funding rates had also turned negative, indicating crowded bearish bets vulnerable to sharp upward squeezes.
The recent bounce has liquidated over $307 million in leveraged bearish positions. Notably, Bitcoin perpetual funding rates remain below neutral, suggesting the rally is not driven by aggressive leveraged speculation.
Crypto-related equities also saw gains, with stablecoin issuer Circle jumping 20% after an earnings beat. Coinbase, MicroStrategy, and Galaxy also advanced. Bitcoin miners extended their rebound, benefiting from improving risk appetite in traditional markets, with the S&P 500 and Nasdaq 100 trading higher.
For the first time in over 40 days, the Coinbase Premium Index has turned positive, signaling a return of U.S. buyers and institutional participation. U.S. spot Bitcoin ETFs recorded $257.7 million in inflows on Tuesday, the largest daily total since early February.