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Why Is Bitcoin Pumping Today?

Bitcoin is bouncing hard as of 25 Feb 2026 and this move is not random.

After sweeping major liquidity in the $63K–$62K zone, BTC has reclaimed $64,800+ and is showing strong short-term momentum. Let’s break down what’s really driving today’s pump.


1. Liquidity Sweep at $63K–$62K

The recent drop into $63K–$62K wasn’t just a correction, it was a liquidity grab.

What happened:

  • Equal lows formed around $63K
  • Retail longs placed stop losses below support
  • BTC wicked into $62K region
  • Stops got triggered
  • Smart money absorbed the liquidity

Once that sell-side liquidity was taken, price reversed aggressively.

This is classic market structure behavior:
Sweep liquidity → reclaim level → squeeze upward.

Now BTC is trading back above $64,800, showing that the breakdown was likely a deviation rather than continuation.


2. Spot Bitcoin ETF Inflows Turning Positive Again

One of the biggest structural drivers behind Bitcoin strength remains institutional demand through U.S. spot ETFs.

Recently:

  • Net inflows resumed after a few outflow sessions
  • Large asset managers continue accumulating
  • Daily inflow figures have been stabilizing instead of bleeding

When ETFs buy:

  • They must acquire real BTC from the market
  • This reduces circulating supply
  • Selling pressure weakens over time

Strong ETF inflows + liquidity sweep = high probability reversal setup.

Institutional demand quietly absorbs panic selling.


3. Short Futures Getting Liquidated

This move also has characteristics of a short squeeze.

During the breakdown:

  • Funding rates flipped slightly negative
  • Open interest stayed elevated
  • Traders aggressively shorted the breakdown

When price reclaimed $64K:

  • Shorts got trapped
  • Liquidations started triggering
  • Market buys forced price higher

Each liquidation fuels additional upside momentum.

This creates a chain reaction:

Short entries → Price reclaims level → Shorts forced to buy back → Price accelerates upward.


4. Derivatives Data Supports the Move

Key derivative signals during the bounce:

  • Open interest declining while price rises → shorts closing
  • Funding stabilizing
  • Liquidation clusters cleared below $63K
  • Reduced downside liquidation pressure

When OI drops on a pump, it usually means positions are getting closed, not new longs opening recklessly. That’s healthier than a pure leverage-driven rally.


5. Market Structure Shift (1H Perspective)

On the 1-hour timeframe:

  • Higher low formed after sweep
  • Strong impulsive bullish candle from lows
  • Reclaim of prior intraday support
  • Currently consolidating above reclaimed range

If BTC holds above $64,500–$64,800:

Next liquidity targets sit near:

  • $66K
  • $67.7K
  • And potentially the psychological $70K region

Failure to hold above $64K would invalidate the immediate bullish momentum.


6. Macro Sentiment Stabilizing

Beyond technicals:

  • Equity markets showing stability
  • Risk appetite improving
  • No major macro shock in the past 24 hours
  • Dollar strength cooling slightly

Bitcoin thrives when macro fear cools and liquidity conditions stabilize.


So Why Is Bitcoin Pumping?

It’s a combination of:

  1. Liquidity sweep at $63K–$62K
  2. ETF inflows absorbing supply
  3. Short futures getting squeezed
  4. Clean market structure reclaim
  5. Reduced downside liquidity pressure

This isn’t random volatility.

It’s structured price behavior.


What Happens Next?

Two scenarios for Bitcoin:

Bullish Continuation

  • Holds above $64.5K
  • Breaks $66K
  • Targets $67.7K – $70K liquidity

Fakeout Scenario

  • Loses $64K again
  • Fails to build higher lows
  • Revisits $62K region

For now, momentum favors bulls but confirmation comes from holding reclaimed levels.


If you’re tracking this for your long-term strategy or DCA framework, remember:

Short-term volatility creates opportunity.
Liquidity events often mark local bottoms.

The market just grabbed liquidity.
Now it’s deciding whether this is a relief rally or the next leg up.

Read also:

Top 10 Best Strategies to Follow for the Bear Market 2026

Is Crypto Being Manipulated? Jane Street UST LUNA Lawsuit Reveals

Can Bitcoin Recover In 2026?

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Ritesh Gupta
Ritesh Gupta is a Market Analyst on Cryptojist and Trader since 2021. Been through 2 crypto bear markets. Proficient in financial and strategic management.

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