Bitcoin Snaps Downtrend to Hit $69K as SOTU Relief Sparks Global Market Rally

opsis

Bitcoin rebounded to $69,000 on February 25, 2026, marking a reversal from a months-long downtrend. The rally coincided with a broader market rebound triggered by US President Donald Trump's State of the Union address, which emphasized economic resilience and falling inflation according to reports.

The State of the Union speech, held on February 22, underscored a 1.7% decline in core inflation and falling mortgage rates, signaling reduced policy uncertainty. These remarks helped stabilize risk appetite across equities and cryptocurrencies as data shows.

Bitcoin's rebound followed a week of volatility and forced liquidations. Over $323 million in leveraged short positions were liquidated in 24 hours, triggering a short squeeze that pushed prices higher according to MEXC reports.

Why the Move Happened

Bitcoin's surge was partly fueled by inflows into spot ETFs. US Bitcoin ETFs recorded $257.7 million in net inflows on February 24, ending five consecutive weeks of outflows according to TradingView data.

President Trump's address also highlighted a 53-record high stock market and $18 trillion in global capital inflows into the US economy. These remarks created a bullish environment for risk assets, including cryptocurrencies according to financial reports.

How Markets Responded

Bitcoin's price initially surged above $66,000 before retreating to $65,500 by the end of the speech. However, the asset continued to rise in the following days, reaching $69,000 by February 25 according to price data.

Ethereum and other major altcoins also saw gains. Ethereum rose 3.3% to $1,906, and Solana gained as much as 5.48%. The broader crypto market cap rose to $2.26 trillion as the rally continued according to MEXC data.

The Nikkei, a major Japanese stock index, also responded to the global risk-on sentiment, rising 13% year-to-date and poised to reach 60,000 by mid-2027, according to a Reuters poll according to Reuters reporting.

What Analysts Are Watching

Analysts remain cautious about the sustainability of the rally. Aurélie Barthere of Nansen noted that slowing regulatory momentum and a tech sector selloff continue to pressure Bitcoin's long-term recovery according to financial analysis.

Derivatives data also indicates market caution. Put options with a March 6 expiry totaled $230 million, signaling demand for downside protection ahead of potential geopolitical risks, including a possible US strike on Iran according to market data.

Ethereum's short liquidations reached their highest level since February 5, suggesting a potential trend reversal. If positive momentum continues, Ethereum could reach $2,250 or even $3,000 according to price forecasts.

Bitcoin's ability to hold above $66,500 and maintain consistent ETF inflows will be key to confirming the rebound. For now, markets are watching for further signals from Trump's administration and global economic data according to market analysis.