Bitcoin Surges Above $68,500 as Crypto Market Unwinds Bearish Positioning

Bitcoin's price has experienced a significant rebound after weeks of deeply bearish positioning across the crypto market. The cryptocurrency's price has surged above $68,500, gaining more than 6% over the past 24 hours. This move has sparked a broader relief rally across altcoins, with Ethereum's ether (ETH) surging 10% to reclaim the $2,000 level.

Other altcoins have also experienced significant gains, including Solana (SOL), DOGE, ADA, and Chainlink LINK, each advancing more than 10%. This outperformance has led to a broader rally across crypto-related equities. Some stocks have experienced sharp reversals, with Stablecoin issuer Circle (CRCL) surging 29% after an earnings beat.

The rebound is also attributed to the unwinding of deeply bearish positioning across the market. The Crypto Fear & Greed Index has been hovering in Extreme Fear levels for most of February, indicating a significant shift in market sentiment. The perpetual futures funding rates have turned negative multiple times over the past weeks, meaning short sellers have been paying longs to maintain positions.

The improvement in risk appetite across traditional markets has also contributed to the crypto bounce. The S&P 500 and the tech-heavy Nasdaq 100 were higher in the first half of trading, with the software sector extending its gains.