Bitcoin Rallies to $68,000, Short-Term Rebound

Bitcoin rallied sharply Wednesday, reclaiming $68,000 after touching lows near $62,500 earlier this week, as corporate treasury accumulation buys, the first meaningful bitcoin ETF inflow in a week, and short covering drove a rebound across crypto-adjacent equities. Stay up on the crypto news that matters with "Crypto Currents," daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.BITCOIN'S "RELIEF RALLY" AMID DEEP MONTHLY DRAWDOWN:characterizes today's move as a "relief rally," with bitcointrading in the $68,000–$69,000 range after rebounding roughly 4.6% over the past 24 hours from lows near $62,500 earlier in the week. Bitcoin remains on track for its worst month since the June 2022 crypto collapse, with Bloomberg's February 26 rundown noting that BTC is down about 24% in February and more than 45% below its October 2025 all-time high of $126,080.that nearly 9M BTC, around 45% of circulating supply, is now held at a loss, yet "bitcoin's plumbing" has continued to operate smoothly during the drawdown, with no major exchange or settlement outages. Combined with today's bounce and short-covering, the on-chain data backdrop led, even as realized losses remain elevated.BTC INFLOWS, ETH OUTFLOWS, SOL-ROTATION:shows U.S. spot bitcoin ETFs with a net inflow of 1,292 BTC today, reversing a seven‑day stretch of cumulative net outflows totaling 4,459 BTC. Etherproducts moved in the opposite direction, with a net outflow of 57,543 ETH today and 65,691 ETH over the past week, while solanaETFs drew a net 39,169 SOL today and 166,521 SOL over seven days, signaling that some ETP investors are rotating toward higher-beta Solana exposure into the bounce.AMERICAN BITCOIN, NAKAMOTO DEAL, JPM BITCOIN NOTES:American Bitcoin, a majority-owned subsidiary of Hut 8,, highlighting $185.2M in full-year revenue and $78.3M in Q4 revenue, up roughly 22% quarter-on-quarter. The company disclosed that its bitcoin reserve grew from zero in Q2 2025 to 5,401 BTC at year-end and to more than 6,000 BTC as of the filing, that it mined 1,654 BTC from Q2 through year-end, and that it operates about 25 EH/s of installed capacity across some 78,000 ASICs. Nakamotoalsoconfirming the completed acquisitions of BTC Inc. and UTXO Management, making both companies wholly owned subsidiaries. The filing places the stock consideration at 364,795,104 Nakamoto shares, valuing the transaction at approximately $81.6M, and notes that the acquired businesses generated about $80.5M in revenue, $34.2M in EBITDA, and $40.1M in net income in the 12 months ended September 30, 2025. In structured products, JPMorgan'son today's docket describes auto callable accelerated barrier notes linked to the iShares Bitcoin Trust ETF, with pricing on February 23 and settlement expected "on or about" February 26. The notes offer 1.5x leveraged exposure to IBIT's upside with early call features and significant downside participation if bitcoin declines below barrier levels before maturity on February 28, 2028, and are fully and unconditionally guaranteed by JPMorgan.ON-CHAIN FLOWS:Data from Lookonchain and Arkham,, show that Vitalik Buterin has now sold 17,196 ETH, approximately $34.96M, this month, surpassing his initially telegraphed 16,384‑ETH plan by 4.9%. Today's report emphasizes that the proceeds are earmarked for open-source software, biotech research under the Kanro initiative, privacy tools, and secure hardware, and also points out that ETH has rallied about 10% today, from around $1,816 to above $2,100before pulling back to the $1,980s, despite his selling, a break from past patterns where similar sales coincided with 5–22% drawdowns. Whale flows today skew toward ETH accumulation and leverage., notes that address 0xAb59 spent $14.57M to buy 7,008 ETH at $2,079, while address 0x166f withdrew 20,000 ETH, approximately $38.25M, from Binance and Deribit across five transactions in about two hours. Another whale, 0x2bd, swapped approximately 240.44 BTC, approximately $15.7M, for 8,152 ETH via ThorChain, deposited the ETH into Aave, borrowed 36M USDTon a looping basis, and bought 17,283 additional ETH at $2,083, building a 25,434.5‑ETH stash worth roughly $52.45M with a liquidation price of $1,705.65,On the bitcoin side,, approximately $43.05M, to Geminiafter three years of inactivity, implying a profit near $25.37M if liquidated, and a newly created wallet that withdrew 500 BTC, roughly $32.9M, from Binance. Together with today's positive ETF flows, these moves suggest that, at least for now, bigger players are treating sub‑$70K BTC levels as attractive entries even as longer-term holders remain heavily underwater.PRICE ACTION:As of time of writing, bitcoin was trading at $66,745.32, while ether was trading at $1,985.02,.