Yesterday I noticed that Bitcoin broke above $68,500 and is now holding around $71,550 — this was a good rebound after weeks of bearish sentiment. The entire altcoin season has come back to life: Ethereum, Solana, Dogecoin, and other major altcoins rose by more than 10%. The Fear and Greed Index was at extreme fear all through February, so such a reversal looks logical.

The most interesting part is what happened with shorts. In 24 hours, nearly $400 million was liquidated in leveraged downside positions. Futures funding rates had been negative for a long time, which means short sellers were overpaying to maintain their positions. The market was flooded with bears, and once buying began, everything started moving up.

What matters is that even now, Bitcoin’s funding rates remain below neutral levels — this isn’t a speculative leveraged pump, but a healthier rebound.

Shares in the crypto sector also increased. Circle added 29% after strong results, and Coinbase rose 13%. And for the first time in 40+ days, the premium index of a major American exchange is positive again — a signal that American investors are returning. Spot Bitcoin ETFs received $257 mln in a day — the biggest inflow since early February. The Fear and Greed Index is starting to move away from the extreme, and risk appetite is coming back.