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The Daily Drip
Wednesday, February 25, 2026
The Daily Drip
✅ Top Takeaways
- > Trump's SOTU sparks $2K BTC surge:President Trump's State of the Union address, emphasizing falling inflation and economic revival, triggered a $2,000‑plus jump in Bitcoin and lit a fuse across the broader crypto complex — even as he made no direct mention of digital assets. > $325M in shorts liquidated:Short sellers across BTC, ETH, SOL, XRP, DOGE and ADA were squeezed out of $325 million in positions as the sudden rally caught leveraged bears flat‑footed, amplifying gains across the board. > Nvidia earnings in focus:Crypto rallied in tandem with tech stocks ahead of Nvidia's after‑close earnings, where analysts project 62% profit growth and a 68% revenue jump — results that could set the tone for both equity and crypto direction heading into the weekend.
📰 Crypto Market Summary
Bitcoin surged 7.59% to $68,933.66, while Ether jumped 11.57% to $2,066.20, with Solana leading gains at 12.92% as traders engaged in bargain buying after recent steep losses. XRP also rallied 8.18% to $1.46 amid improving risk sentiment across crypto markets.
Bitcoin rebounded from a near 50% wipeout from October's record highs, hitting intraday peaks above $66,000 before settling around $65,500. Despite the recovery, institutional and retail demand remains subdued, with spot Bitcoin ETFs seeing five consecutive weeks of outflows heading into Tuesday's session.
President Trump's State of the Union speech, emphasizing falling inflation and economic revival, triggered a $2,000‑plus surge in Bitcoin and sparked enthusiasm across crypto markets. Trump doubled down on his tariff agenda but made no direct mention of cryptocurrency during the historic address.
Solana gained 12.92%, Ethereum rose 11.57%, and XRP climbed 8.18% as altcoins led the market recovery. Polkadot surged 11.5% while other major tokens including Cardano, Uniswap and Bittensor posted gains exceeding 6% amid widespread short liquidations totaling $325 million.
Cryptocurrency markets rallied in tandem with tech stocks ahead of Nvidia's highly anticipated earnings report after market close Wednesday. Analysts expect Nvidia to post 62% profit growth and a 68% revenue jump, with results likely to significantly influence both equity and crypto market direction in the sessions ahead.
Bitcoin must reclaim $67,500 to confirm a departure from bearish trends, with $70,000 as the next key target. A decline below $64,000 would invalidate the bounce, and analysts note support exists in the mid‑$55,000 range if selling pressure resumes — underscoring that while today's rally is welcome, the broader technical picture remains fragile.
🌍 Macro & Policy Lens
Two macro catalysts — Trump's SOTU and Nvidia earnings — are driving today's risk‑on wave, but structural headwinds remain intact.
- >Trump SOTU fuels risk‑on mood: The President's focus on falling inflation and economic strength gave markets a short‑term confidence boost, but his silence on crypto policy left digital‑asset traders filling in the blanks with optimism rather than concrete guidance. >Nvidia's earnings as a crypto proxy: With BTC and tech equities increasingly correlated, Nvidia's results after Wednesday's close carry outsized weight — a blowout beat could extend the crypto rally while a miss risks unwinding today's short‑squeeze gains. >Tariffs still a wildcard: Trump's reaffirmation of his tariff agenda injects ongoing uncertainty into global trade and supply chains, keeping the dollar elevated and limiting how far risk assets can sustainably run without policy clarity.
For crypto, today's macro backdrop is the best it has been in weeks — but with five straight weeks of ETF outflows and sentiment still in extreme fear, the rally needs follow‑through from both Nvidia results and institutional flow data to become something durable.
💰 Flows & Market Structure
Spot ETFs snapped back sharply with approximately $266.9M in net inflows yesterday, the largest single‑day inflow figure in weeks, led overwhelmingly by Bitcoin products as institutional buyers returned following the Trump SOTU catalyst.
- >BTC ETFs: roughly $257.7M in net inflows, a dramatic reversal from recent outflow days and a signal that at least some institutional players are treating the $65K–$67K range as an accumulation zone. >ETH ETFs: about $9.2M in inflows, a modest but positive contribution as Ether broke back above $2,000 and attracted fresh interest from buyers who had been watching the $1,900 level as a potential floor. >Short liquidations amplify moves: the $325M in forced short closures across the market added jet fuel to an already rally‑prone session, creating a feedback loop of rising prices and further squeeze pressure on remaining bears.
The S&P Cryptocurrency Broad Digital Asset Index was flat on the day and remains down 27.82% year‑to‑date, a reminder that one strong session does not erase months of drawdown.
Desks describe today's session as a "short‑squeeze rally with macro tailwinds" — genuine in its force but still requiring confirmation from sustained ETF inflows and a hold above $67,500 BTC before it can be called a structural trend change.
📊 Sentiment Dashboard
Prices jumped sharply but the fear gauge barely budged — sentiment remains deeply defensive even after today's broad rally.
🔢 Market Performance
| Coin | Dec 31 | Now | 24h % | 7d % | YTD % | Cap |
|---|---|---|---|---|---|---|
| BTC | $87,508.83 | $68,838.51 | 6.92% | 4.17% | ‑21.34% | $1,376,408,345,421.60 |
| ETH | $2,967.04 | $2,062.53 | 11.40% | 6.39% | ‑30.49% | $248,932,084,522.18 |
| USDT | $1.00 | $1.00 | 0.00% | 0.04% | 0.17% | $183,641,514,896.96 |
| XRP | $1.84 | $1.46 | 7.77% | 1.74% | ‑20.78% | $88,948,915,572.39 |
| BNB | $863.26 | $630.38 | 7.31% | 4.34% | ‑26.98% | $85,957,388,898.81 |
| SOL | $124.48 | $88.94 | 13.60% | 9.93% | ‑28.55% | $50,589,543,666.21 |
| TRX | $0.28 | $0.29 | 1.43% | 2.58% | 2.29% | $27,133,632,938.32 |
| DOGE | $0.12 | $0.10 | 12.69% | 5.18% | ‑13.72% | $17,486,473,712.30 |
| BCH | $598.96 | $512.67 | 5.63% | ‑7.65% | ‑14.41% | $10,253,344,352.48 |
| ADA | $0.33 | $0.30 | 14.22% | 8.79% | ‑9.89% | $10,727,080,686.19 |
- >Every token posted positive 24‑hour gains — ADA led at 14.22%, SOL close behind at 13.60% and DOGE surging 12.69% — the broadest green day in weeks driven by short liquidations and macro optimism. >TRX stands out as the only token with a positive YTD return at 2.29%, while BCH remains the week's laggard with a 7.65% weekly decline despite today's bounce. >Stablecoins such as USDT remain anchored near $1.00, keeping settlement rails intact as traders rotate aggressively into risk assets on the back of Trump's SOTU and Nvidia earnings anticipation.
⚡ Risk & Market Lens
Today's rally is real but fragile — $325M in short liquidations and a SOTU sugar rush can reverse just as quickly without sustained institutional follow‑through above $67,500 BTC.
Key risks to watch: whether Nvidia's after‑close earnings beat or disappoint and carry that sentiment into Thursday's crypto open, whether BTC can hold above $67,500 to confirm a technical trend break, and whether today's $266.9M ETF inflow marks the start of a new accumulation phase or a one‑day tactical bounce before outflows resume.
For now, the market has earned a cautious upgrade from "deeply oversold" to "tentatively recovering" — but with Fear & Greed still at 11 and five weeks of prior ETF outflows in the rearview mirror, treat this rally as a promising development requiring confirmation rather than a definitive bottom signal.
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Disclaimer
This newsletter is for informational and educational purposes only and is not investment advice, solicitation, or an endorsement of any strategy or asset. H2cryptO does not warrant data accuracy or completeness.
Crypto assets are highly volatile; always consult professional advisors, use caution, and comply with local laws before making strategic, financial, or investment decisions.