Bitcoin staged a strong rebound this morning (Feb. 25), surging from below $64,000 to hit $66,306 before settling near $66,047, a gain of over 3% on the day. Ethereum followed suit, climbing from $1,846 to break above $1,926, currently trading around $1,919, up about 4%. After days of panicked selling, buyers have temporarily regained the upper hand.
Technical bounce after prolonged fear
The rally came after Bitcoin had been under sustained pressure, with prices briefly dipping below $64,000 yesterday. The Crypto Fear & Greed Index remained in "extreme fear" territory. However, today's sharp move suggests strong bid support near $64,000, with bears largely exhausted. Bitcoin had tested the $63,000-$64,000 range multiple times without a decisive breakdown, forming a short-term bottom pattern. The bounce was accompanied by rising volume, indicating fresh capital entering the market.
Ethereum holds $1,840, then strikes back
Ethereum dropped to $1,843 yesterday but defended the critical $1,840 support level. Today's rally was even stronger than Bitcoin's, gaining ~4% and piercing $1,926. The ETH/BTC ratio ticked up, signaling improved risk appetite and rotation from BTC into ETH and altcoins.
Outlook: Reversal or dead cat bounce?
Despite the powerful rebound, analysts remain cautious. Bitcoin has fallen about 23% in the first 50 trading days of the year, the worst start on record. One day's recovery does not guarantee a trend change. On the bullish side, long-term holder (LTH) supply has started rising again, reaching approximately 14.3 million BTC, suggesting veteran investors are accumulating. Meanwhile, rate markets are repricing expectations; the probability of a rate cut in April 2026 continues to rise.
Tech stocks and Asian markets join the rebound
Crypto's rally was not isolated. US tech stocks bounced overnight, pushing the Nasdaq 100 up 1.1% and the S&P 500 higher, with software shares rebounding after the recent AI-driven selloff. Consumer confidence data beat estimates, adding support. Asian equity futures pointed to strong opens in Sydney, Tokyo, and Hong Kong, and regional indices were broadly green this morning. Short-dated bonds weakened, while gold and crude oil fell, signaling capital shifting from havens to risk assets.
Markets are now focused on Nvidia's earnings due Wednesday. David Laut of Kerux Financial said the report will either "ease" or "intensify" investor concerns about AI. Nvidia's stock has been flat lately as investors dumped big tech, but analysts expect a strong beat. Given Bitcoin's high correlation with US tech, a stellar Nvidia print could provide an extra tailwind for BTC. The next key levels to watch are $66,500 resistance for Bitcoin and whether Ethereum can hold above $1,900.