Bitcoin Adds $120B in Value: Will Demand Really Keep BTC’s Price High?

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Ah, Bitcoin. The gift that keeps on giving-or does it? Lately, we’ve seen its price surge with the subtlety of a stampede, prompting traders to clutch their pearls and reassess the “10 a.m. dump” pattern. For months, it was like clockwork-just when the day seemed to show promise, Bitcoin would falter. But lo and behold, this morning, Bitcoin [BTC] decided to break free from its predictable cage and soared to about $68,500, up by a juicy 7.12%. Who needs tradition when you’ve got momentum, right?

For a while, the price was caught in the $63,000 range, with selling pressure hovering like a storm cloud. But then, something miraculous happened-buyers, the unsung heroes, pushed Bitcoin above $64,000, and like a well-behaved student in class, it kept climbing to $65,500. But here’s the kicker: the much-anticipated liquidity flush didn’t happen. Instead, green candles materialized, lighting the way to $66,000 and then blasting past $68,750.

Now, let’s not forget the soap opera unfolding in the background: Terraform suing Jane Street. Oh, the drama! As rumors about a mysterious systematic seller spread, the narrative shifted. Intraday price action took on a life of its own, and after five straight weeks of red, the weekly candle turned green, adding a whopping $120 billion to Bitcoin’s valuation. One can only imagine the traders’ collective sigh of relief.

But the ultimate question remains: Is this a sign of true demand, or is Bitcoin simply taking a breath before falling back into bearish waters?

Positioning-Driven Bounce or True Demand Expansion?

Let’s talk shop. Bitcoin’s bounce coincided with a sharp reset in derivatives. Now the big debate is whether this price surge is the result of organic price discovery or a mere distortion created by positioning. Open Interest took a dive from a hefty $30 billion to a more modest $21.8 billion, signaling aggressive deleveraging. When leverage got flushed out, forced liquidations kicked the downside into exhaustion, and Bitcoin, like a phoenix from the ashes, rebounded toward $68,600, adding $120 billion to the market cap.

As liquidations cleaned up the mess, suppressed positioning created the perfect squeeze. Short positions unwound themselves like a sloppy knot, fueling the rally. This is why the recovery phase felt like it had rocket boosters attached.

Meanwhile, the Fund Flow Ratio lingered around 0.05 with Binance’s flows nearer to 0.012. This might indicate a lack of panic selling, but also points to weak structural accumulation. It’s the financial equivalent of someone holding their breath to avoid a sneeze-impressive but not sustainable.

So, in simpler terms: This rally is more about a relief bounce than genuine demand. The price surge came from a de-leveraged position, and unless the inflows return, it’ll just be a brief interlude in a broader bearish play.

U.S. Spot Demand Returns as Whale Distribution Cools

The U.S. market is showing some signs of life. The Coinbase Premium Index flipped positive, indicating that spot buying interest is creeping back into the market. This shift suggests that Bitcoin’s price has found some stability around $68,600. Not bad for a currency that often behaves like a moody teenager.

On the whale front, things are cooling down. The Exchange Whale Ratio dropped from 0.7-0.8 (remember when whales were dumping like there was no tomorrow?) to around 0.5. This means that large holders are holding onto their Bitcoins a little tighter now, and sell-side pressure is easing. No more mass exoduses for these whales-just quiet, contemplative swimming.

That said, the absence of massive spikes in whale selling suggests that the big fish are not eager to exit. They’re likely waiting for the perfect moment to re-enter the market. This could be the calm before the next wave, or just a brief nap.

In any case, the combination of improving U.S. demand and muted whale selling suggests a constructive base for Bitcoin. Stabilization might just hold, but let’s not get too excited just yet.

Final Summary

  • Bitcoin’s rebound was more about liquidation-driven expansion, where deleveraging and short squeezes added $120 billion in market cap rather than organic demand.
  • Bitcoin’s future stability depends on sustained U.S. inflows and continued whale absorption, with distribution pressure fading into the background.

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2026-02-26 17:59