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Why is the crypto market rallying today? (Feb. 25)

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Why is the crypto market rallying today? (Feb. 25)

The crypto market cap rebounded 2.7% to $2.32 trillion on Wednesday after recovering some of the previous days’ losses as investors bought the dip.

Summary

  • The crypto market recovered from Tuesday’s losses as institutional investors capitalized on the dip.
  • A rally in tech stocks and improving geopolitical conditions have acted as a tailwind for risk assets like crypto.

Bitcoin (BTC), the industry’s primary bellwether, climbed 5.5% to hit an intraday peak of $66,233 before consolidating near $65,000, a level now serving as a vital psychological floor. 

Ethereum (ETH) followed suit with a 4% rise, stabilizing around $1,900, while other major assets, including XRP, Tron (TRX), and Dogecoin (DOGE), recorded more modest gains between 1% and 3%. 

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Leading the large-cap pack, Solana (SOL) outperformed with a surge of nearly 7% and had successfully reclaimed the $80 threshold at the time of writing.

Crypto prices rebounded amid millions of liquidations across leveraged markets. Data from CoinGlass shows that around $154 million in short positions were liquidated across the futures market. Over the past 24-hour session, nearly $343 million was liquidated from the broader market, with the majority coming from short liquidations. 

When short positions get liquidated, they force the exchange’s liquidation engine to buy back the underlying assets at current market prices to close out the positions, and thus result in an upward short squeeze that accelerates the price recovery.

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Crypto market rebounds amid institutional dip buying 

The crypto market recovery was primarily supported by investors buying into the recent dip.

Notably, Bitcoin plunged more than 7.5% yesterday, as it moved closer to the critical $60,000 support level. The move sparked a relief bounce, during which BTC successfully reclaimed the $65,000 threshold. The biggest tailwind for the jump was a surge in institutional buying spearheaded by Michael Saylor’s Strategy, which acquired additional BTC during the pullback.

Another key catalyst fueling the market rally came in the form of the Coinbase Premium becoming positive for the first time in 40 days. A positive reading on this metric means Bitcoin is more expensive on Coinbase than on global exchanges. Such a significant price gap is a classic signal of strong buying pressure from American investors and institutions.

As Bitcoin reclaimed the support that analysts believe is essential to avoid more downside volatility, the positive momentum rippled across the broader market.

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Market rebound was supported by tech stocks rally

Crypto prices also rose after several Asian tech stocks rallied. South Korea’s KOSPI Index rose to record highs, signaling a broader risk-on sentiment among investors across global markets.

Major traditional U.S. stock indices, such as the S&P 500 and Russell 2000, also stood higher on the day. Cryptocurrencies often tend to rally when such equity markets show signs of strength and stability.

Meanwhile, the crypto market’s tight correlation with technology stocks remained evident, with software shares (IGV) rebounding nearly 1.7% over the past day after recent losses triggered by fears that generative AI tools could disrupt traditional software business models.

However, these concerns are easing as industry leaders like Intuit and DocuSign announce strategic partnerships with AI firm Anthropic, signaling that established companies may successfully adapt to the technology rather than being displaced by it.

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Hopes of de-escalation in U.S. and Iran conflict

Another major catalyst for today’s rally is market hopes of a potential de-escalation of conflict between the U.S. and Iran. Reports cited that Iran’s deputy foreign minister has hinted that the country is looking to take any required step to reach a deal with the U.S., reducing fears of an imminent military conflict.

Earlier last Thursday, U.S. President Donald Trump had threatened to launch an attack within ten days from that time, spooking investors and reducing risk-on appetite.

With the latest positive headlines, investors are likely taking a breather as they await more clarity on the diplomatic front. As the geopolitical tensions eased, traditional safe-haven assets such as gold and crude oil lost the momentum they had been riding on, giving crypto assets the room to regain footing.

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Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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Crypto World

Cardano (ADA) Soars 10% Daily, Bitcoin (BTC) Recovery Stopped at $70K: Market Watch

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BTCUSD Feb 26. Source: TradingView


DOT, STABLE, and UNI have rocketed the most in the past day, with gains of over 20% in some instances.

After dumping to a new local bottom of $62,500, bitcoin went on a tear yesterday, surging by over eight grand to $70,000, where it faced immediate selling pressure.

Many altcoins have produced even more impressive gains over the past day, with ETH reclaiming the $2,000 level, and ADA surging by double digits to almost $0.30.

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BTC Tapped $70K

After last week’s rejection at $70,000, bitcoin spiraled down for a few consecutive days and dipped to $65,600 last Thursday. It reacted well to this decline and jumped toward $69,000 during the weekend, where it was stopped again after the latest developments on the tariff front, prompted by the US Supreme Court and the subsequent Trump actions.

Although BTC remained relatively still at first, it plunged when the legacy futures markets opened. In just over an hour, the asset plummeted to $64,400 before it rebounded to $66,400.

That appeared to be a dead-cat bounce, and BTC quickly began to lose value again. This time, the nosedive drove it to a three-week lot of $62,500. The bulls finally stepped up decisively at this point and prevented another leg down. Just the opposite; bitcoin exploded out of the gate and soared to $70,000 for the first time in over a week.

It couldn’t break above that level, and has declined by two grand since. However, it’s still 4.5% up on the day, and its market cap has returned to $1.360 trillion on CG. Its dominance over the alts remains inches above 56%.

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BTCUSD Feb 26. Source: TradingView
BTCUSD Feb 26. Source: TradingView

Alts Rocket

Ethereum, which some analysts believe might have already bottomed out, is back above $2,000 after an impressive 8% daily surge. XRP has reclaimed the $1.40 line after a 5.5% pump. SOL, DOGE, CC, BNB, and HYPE have marked similar gains, while LINK has soared by 9%.

ADA has outperformed the rest of the larger-cap alts. A 10% surge has driven it to almost $0.30. DOT is today’s top performer, having soared by 24% to roughly $1.60. STABLE, UNI, and NEAR follow suit.

The total crypto market cap has recovered $120 billion since the recent low and is up to $2.425 trillion on CG.

Cryptocurrency Market Overview Feb 26. Source: QuantifyCrypto
Cryptocurrency Market Overview Feb 26. Source: QuantifyCrypto
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Can XRP Price Recover in March?

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Can XRP Price Recover in March?

A convincing bullish reversal setup and hints of easing whale distribution may push the price of XRP up by 20% or more in March.

XRP (XRP) is down more than 50% since October 2025, with five consecutive monthly losses. Can March finally snap the bearish streak?

Key takeaways:

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  • XRP’s double-bottom setup targets 20% upside in March.

  • Whale selling has cooled and larger-holder balances are rising, improving the bullish outlook.

Double bottom hints at 20% XRP rally

As of Thursday, XRP was forming what appeared to be a double bottom pattern after holding the $1.30–$1.35 support area twice in February.

A double bottom forms when the price hits the same floor twice an rebounds. It resolves on a breakout above the neckline, often setting an upside target equal to the pattern’s height from the breakout level.

XRP/USD daily chart. Source: TradingView

For XRP, the neckline sits near $1.50. A decisive break above it increases the odds of XRP rising to $1.68–$1.70 by March, roughly 20% above the current levels.

XRP whale flows improve recovery chances

XRP net flows are shrinking toward neutral levels after spending months in distribution phase, according to data resource CryptoQuant.

As of Thursday, the total whale flow on a 90-day moving average was around -3.29 million XRP compared to roughly -33.50 million XRP in December. This shows that whale outflows have substantially decreased despite the 25% price drop in the same period.

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XRPL whale flow 90-day moving average vs. price. Source: CryptoQuant

At the same time, XRP supply held by wallets with at least 1,000 tokens has resumed its upward trajectory in recent weeks, suggesting that whales have stopped selling and may be re-accumulating near current lows.

XRP supply held by addresses with at least 1,000 token balance. Source: Glassnode

A similar easing in whale flows occurred in April 2025, which preceded an XRP rebound of over 50%.

Therefore, a clean flip above zero would signal net accumulation and strengthen the case for XRP to follow through toward its $1.68–$1.70 double-bottom target in March.

What could spoil the bullish XRP scenario?

The $1.68–$1.70 area is above XRP’s 50-day exponential moving average (50-day EMA, the red trendline), a level the price has failed to break throughout February.

XRP/USD daily price chart. Source: TradingView

A pullback from the 50-day EMA could keep XRP from hitting its double-bottom target. That may further trigger a bear pennant scenario with the price target at around $1, down about 30% from the current price levels.

Related: $209B exited altcoins over the last 13 months: Did traders rotate into Bitcoin?

Macro risks are another headwind. The return of the AI-driven risk-off trade and US–Iran tensions can drain liquidity from high-beta assets, making it harder for XRP to sustain a breakout even if the chart setup currently looks promising.

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