BTC Surges Past $68,000 Mark as Equity Markets Rally and Corporate Results Enhance Market Confidence
Bitcoin climbed beyond $68,500 following a turnaround in American equities driven by policy transparency and robust corporate earnings. Could the $70,000 level be the next bullish target?
Bitcoin (BTC) climbed to a seven-day peak of $68,600 during Wednesday's trading session, jumping from depths close to $62,400 in a span of fewer than 24 hours. This upward movement coincided with fresh inflows into spot Bitcoin exchange-traded fund (ETF) products and strengthened macroeconomic confidence following recent American policy announcements that helped stabilize wider risk asset markets.
Data from derivatives markets reveals that BTC's open interest is declining while funding rates remain comparatively moderate, suggesting the upward movement was primarily fueled by spot market demand instead of an accumulation of leveraged positions.
Bitcoin benefits from macroeconomic catalyst and favorable ETF reversal
During Tuesday evening's State of the Union address, US President Donald Trump characterized the initial 12-month period of his administration as an "economic turnaround for the ages," emphasizing declining mortgage rates and a 1.7% reduction in core inflation throughout the last three months of 2025.
Financial markets viewed these comments as an indication of diminished short-term policy ambiguity after periods of tariff discussions and Supreme Court-related volatility, boosting appetite for risk across both equity and cryptocurrency markets.
The US spot Bitcoin ETFs registered $257.7 million in net inflows on Feb. 24, bringing an end to five straight weeks of outflows totaling $3.8 billion. Fidelity attracted approximately $83 million, while BlackRock's iShares Bitcoin Trust captured nearly $79 million.
Bitcoin futures metrics eliminate excessive bearish exposure
With Bitcoin trading in proximity to $69,000, futures market data indicates that its combined open interest has settled around 235,167 BTC, following earlier levels that exceeded 240,000 BTC during the week.
The reduction in open interest implies that excessive leveraged positions have been eliminated during the recent period of market volatility.
Simultaneously, combined funding rates stay marginally negative at -0.0037%. Negative funding reveals that short positions continue paying long positions, demonstrating that traders are not forcefully pursuing upside exposure in spite of the price advancement.
This pairing of decreasing open interest and negative-to-neutral funding suggests a market that has cleared leverage instead of becoming overextended. The advance toward $69,000 seems to be taking place without an aggressive accumulation of long positions.
The cumulative volume delta (CVD) has moved upward, demonstrating that spot market purchasers are entering and represent one of the key forces behind this rally.
Market analyst BackQuant observed that derivatives market activity continues to play a substantial role, and options market data reveals that dealers, the institutions that sell options and hedge their risk exposure, are maintaining what's described as positive gamma.
When gamma is positive, dealers typically buy as the price declines and sell as the price advances to maintain their hedges. This behavior can reduce volatility and decelerate sharp price movements in either direction.
Similarly, trader LP also highlighted BTC's order book mechanics around the $60,000–$63,000 range, where substantial bid pressure previously absorbed selling. Since reaching that zone, the price has expanded roughly 8% to the upside.
The trader further noted that if selling pressure intensifies again at these levels, it may indicate a deceleration in buy-side aggression and initiate another downward reversal.
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