The cryptocurrency market staged a ferocious comeback on Thursday, February 26, 2026, with Bitcoin tearing through resistance levels to trade just shy of $70,000. After weeks of stagnating prices and "extreme fear" sentiment, the digital asset kingpin surged over 6% to hit an intraday high of $69,500. This decisive move, which dragged the broader crypto market out of its slump, was fueled by a perfect storm of bullish catalysts: Nvidia's blockbuster earnings report and a wave of risk-on optimism following President Trump's "Golden Age" State of the Union address. The sudden price action caught bearish traders off guard, triggering a massive $463 million short squeeze that accelerated the rally.
Nvidia Earnings Ignite Risk-On Frenzy
The primary spark for the crypto market recovery came from the traditional finance sector, specifically Nvidia’s earth-shattering earnings release on February 25. The AI chip giant reported a staggering $68 billion in quarterly revenue, crushing Wall Street expectations and cementing the narrative that the artificial intelligence boom is far from over. As Nvidia shares stabilized after initial volatility, the ripple effect was felt immediately in high-risk asset classes.
For crypto investors, the correlation is clear: a healthy tech sector often signals a green light for digital assets. "When the king of AI delivers, the entire risk asset spectrum breathes a sigh of relief," noted a senior market analyst. The renewed confidence in tech innovation provided the liquidity and sentiment boost needed to reverse Bitcoin's month-long downtrend, pushing prices back toward the psychological $70,000 barrier.
Trump’s "Golden Age" Rhetoric Fuels Optimism
Adding fuel to the fire was President Trump’s State of the Union address delivered earlier in the week. While the President did not explicitly name-drop "Bitcoin" or "crypto"—a detail that initially disappointed some die-hard enthusiasts—his broader economic message resonated deeply with markets. Trump declared the arrival of a "Golden Age of America," touting a "roaring economy" and record-breaking stock market performance.
AI Infrastructure Push
Crucially, Trump’s comments on technology were interpreted as highly favorable for the digital infrastructure sector. He emphasized that "major tech companies have the obligation to provide for their own power needs" to support AI data centers, a statement that aligns with the growing intersection of Bitcoin mining, energy infrastructure, and AI computing. This pro-growth, pro-innovation rhetoric was enough to convince institutional investors that the regulatory environment for disruptive technologies would remain accommodative, further emboldening the bulls.
$460 Million Short Squeeze Decimates Bears
The swiftness of the rally created a brutal environment for traders betting against the market. As Bitcoin reclaimed the $68,000 level, it triggered a cascade of forced buy-backs known as a short squeeze. Data from CoinGlass reveals that over $463 million in leveraged positions were liquidated in just 24 hours, with the vast majority being short positions. This liquidation cascade acted as rocket fuel, forcing price markers higher as bears scrambled to cover their exposure.
This event marked a dramatic shift in sentiment. Just days prior, the Crypto Fear & Greed Index sat at a suppressed 5, indicating "Extreme Fear." The violent reversal serves as a stark reminder of the crypto market's ability to punish over-leveraged complacency.
ETF Inflows Return with a Vengeance
Institutional demand has also roared back to life. After five consecutive weeks of net outflows, U.S. spot Bitcoin ETFs recorded over $506 million in net inflows on February 26 alone. BlackRock’s IBIT led the charge, absorbing nearly $300 million of that total. This resurgence in ETF buying pressure suggests that large-scale asset managers were waiting for a catalyst to re-enter the market, and the combination of Nvidia's strength and political stability provided the signal they needed.
As Bitcoin hovers near the $70,000 resistance level, all eyes are on whether this momentum can be sustained. With the "paper hands" flushed out and institutional capital flowing back in, the path to new all-time highs appears clearer than it has been for months.
