Bitcoin short squeeze: $400 million in liquidations in 24 hours.

Bitcoin experienced a significant rebound: in the last 24 hours, the price jumped from below $63,000 to nearly $69,000, gaining over 7% in just a few hours. This move triggered a substantial Bitcoin short squeeze, burning over $400 million in short positions in a single day.The rally, which began during the night of February 25-26, 2026, involved the entire crypto ecosystem: Ethereum, Solana, major altcoins, and stocks of companies exposed to Bitcoin all recorded double-digit gains. After weeks of selling and progressive capitulation, the market showed the first signs of technical reaction.

How a Bitcoin short squeeze works and why it was so intense

A Bitcoin short squeeze occurs when a large number of traders open short positions, betting on a further price decline. When the market reverses sharply, these traders are forced to cover their positions by buying Bitcoin to limit their losses. The forced buying fuels further price increases, creating a cascading effect that amplifies the initial move.In the 24 hours of February 26, Coinglass data showed total forced liquidations of approximately $463 million: of these, over $400 million were short positions. The price reached an intraday high of $69,869, the highest level since the beginning of the month.

The Trump speech as a catalyst

The timing of the rebound is not coincidental. The State of the Union address by President Donald Trump, broadcast on the evening of February 25, contained clearly positive messages for the markets: slowing inflation, historically low mortgage rates, and an optimistic tone about the direction of the American economy.Traditional markets reacted with gains in the Nasdaq and S&P 500. In the crypto world, where sentiment was at its lowest in months, the reaction was even more pronounced. The Fear & Greed index, which just 24 hours earlier showed 11, a level of “extreme fear,” recorded a significant recovery during the day.

Institutional ETFs bought the dip

The narrative of the recovery was further strengthened by data on spot Bitcoin ETFs listed in the United States. On Tuesday, February 25, these instruments recorded net inflows of $257.7 million: the highest daily figure since the first week of February, a sharp reversal from the weeks of outflows that had characterized the crash.This is an important signal: it means that institutional investors, who operate primarily through ETFs, chose to buy during the weakness rather than exit the market. This pattern of accumulation during the downturn is consistent with what has already been observed in the spot Bitcoin ETF flows in February 2026.

The contagion effect on altcoins and stocks

The Bitcoin short squeeze did not leave the rest of the market unaffected. Ethereum gained between 6% and 8%, Solana returned to positive territory after weeks of pressure, while Dogecoin and Cardano recorded double-digit gains. In the US stock market, companies most exposed to the sector reacted strongly: Coinbase, Circle, Strategy, and BitMine all closed significantly in the green.

The long-term context: the decline remains significant

Despite the positive day, the overall picture remains challenging. Bitcoin is still down over 27% since the beginning of 2026 and has lost over 50% from its all-time highs reached in October 2025. February is proving to be the worst month for Bitcoin since 2022, with a monthly loss of over 24%.Those who follow historical cycles recognize in this scenario the phase that Michael Saylor described as the Bitcoin “valley of despair”: a prolonged period of sideways trading after a major crash, which historically precedes major structural rebounds. The open question is whether today’s rebound marks the beginning of that phase or remains an isolated episode in a still fragile market.

What to watch in the next sessions

The most important technical level is the resistance at $70,000: a weekly close above that level would change the short-term sentiment and could attract new buyers. Below, the critical support remains in the $61,000-$63,000 area, already tested several times in the past few weeks.On the macro front, the upcoming US inflation data, expected next week, could determine the direction of risky markets, including Bitcoin. And the trade tariffs announced by the Trump administration remain a background element of uncertainty that continues to weigh on the correlation between Bitcoin and traditional risky assets.