Crypto Market Sees Significant Rebound Amid Short Squeeze

The cryptocurrency market has been on a rollercoaster ride in recent weeks, with prices experiencing significant fluctuations. However, the latest trend suggests that the market is slowly turning around, thanks to the unwinding of crowded short positions.

According to recent data, Bitcoin reclaimed the $65,000 level, surging over 5% in 24 hours, as deeply entrenched bearish sentiment started to dissipate. This move triggered a substantial relief rally across the altcoin market, with Ethereum's ether (ETH) advancing 10% to breach $2,000.

The market's reaction suggests a delicate balance between technical short squeezes and tentative signs of returning institutional conviction. For the first time in over 40 days, the Coinbase Premium Index turned positive on February 25, indicating U.S. institutional capital flows are re-engaging with the market.