Bitcoin price reclaims $68K amid short liquidations and bullish Nvidia earnings

Bitcoin price rebounded over 7% to $69,487 on Thursday amid a spike in short liquidations and improved risk-on sentiment following a bullish Nvidia earnings report.

According to data from crypto.news, Bitcoin (BTC) price shot up to an intraday high of $69,487 on Thursday, Feb. 26, before settling around $68,200 at press time, still holding 4.6% gains over the past 24 hours. The bellwether’s rebound follows just two days after it fell under $63,000 amid investor fears over macroeconomic and geopolitical uncertainty.

Bitcoin price rallied as investors bought the asset during the recent dip in prices. As BTC price rose, it triggered liquidations of highly leveraged bearish bets across leveraged crypto markets. Data from CoinGlass shows that roughly $576 million worth of positions were liquidated from BTC futures, with around $470 million coming from short positions. Bitcoin alone accounted for $194 million in short liquidations.

Short liquidation occurs when rising prices force traders who bet against the asset to close their positions, with traders having to buy back the asset at higher prices to cover their losses. This, in turn, leads to an immediate spike in prices through a feedback loop often called a short squeeze.

Another major tailwind that boosted BTC price and other altcoins came from investors embracing a risk-on sentiment as stocks posted modest gains and broader risk sentiment improved with Nvidia Corp.’s latest bullish earnings report.

Notably, the Dow Jones Index increased by 307 points on Wednesday. At the same time, the Nasdaq 100 and S&P 500 indices jumped by 351 and 56 points. 

AI chip-making giant Nvidia, the world’s largest publicly traded company, reported record-breaking earnings for Q4 of Fiscal Year 2026. Quarterly revenue reached an all-time high, increasing 20% quarter-over-quarter and 73% year-over-year. For the full fiscal year 2026, total revenue reached $215.9 billion, a 65% increase from the previous year.

Previously, investors were concerned about excessive AI spending by Big Tech giants. However, the back-to-back bullish earnings from Nvidia, seen as a barometer for the AI-fueled trade, appear to have calmed investors’ nerves.

The return of inflows into spot Bitcoin ETFs also likely played a modest part in improving investor sentiment. Data from SoSoValue show that the 12 spot Bitcoin ETFs recorded $257.7 million in inflows on Wednesday, marking the first triple-digit inflows figures since Feb. 10.

While it is not yet a strong sign of a long-term trend, investors took it as a positive signal that institutional demand remains resilient despite recent market volatility.