The digital asset market has entered a phase of sharp recovery as of February 26, 2026. The total cryptocurrency market capitalization has climbed to approximately **$2.35 trillion**, marking a significant rebound after a period of consolidation and heavy outflows. Bitcoin has reclaimed the critical **$68,000** psychological level, recently touching an intraday high of **$69,500**. This move follows a successful defense of the **$64,000** support zone, effectively invalidating the bearish narrative that persisted earlier in the month. The primary driver for this resurgence is a major shift in ETF flows. U.S.-listed spot Bitcoin ETFs recorded a net inflow of **$258 million** on February 25, ending a five-week streak of outflows. Fidelity and BlackRock led this activity with individual inflows of **$83 million** and **$79 million** respectively. The recovery is further amplified by a significant short squeeze. Over **$323 million** in leveraged short positions were liquidated within 24 hours. This forced buying activity created a feedback loop that accelerated price gains across the board. Ethereum has mirrored this bullish momentum, surging over **10%** in a single session to trade around **$2,046**. The move has pushed Ethereum’s market cap to roughly **$245 billion**, representing more than **10%** of the total digital asset market. Altcoins are showing broad-based gains. Solana has risen by **7.7%** to reach **$85.89**, while XRP and Cardano have posted gains of **6%** and **5.9%** respectively. Market outperformers like OM and TAO have seen even more dramatic spikes, rising as much as **45%**. Macroeconomic indicators are providing a supportive backdrop. The U.S. 10-year Treasury yield has eased to approximately **4.04%**, down from recent highs. This stabilization in bond yields has improved risk appetite in the broader financial markets, spilling over into digital assets. U.S. demand is also showing signs of a strong comeback. The Coinbase Bitcoin Premium Index has turned positive for the first time in two months. Bitcoin's price on Coinbase now exceeds that on Binance by over **$10**, signaling renewed institutional and retail interest from American investors. Technically, Bitcoin is currently facing resistance at the **$70,000** and **$72,000** marks. While momentum remains high, some indicators suggest a brief period of consolidation may be necessary before the market attempts to breach these multi-month highs. Liquidity conditions are expected to remain a focus for the remainder of the quarter. Market participants are closely monitoring upcoming economic data and Federal Reserve commentary for signals on the next phase of global monetary policy.