Why the Crypto Market is Up Today: Key Drivers Behind the 5% Surge

Key Macro Factors Driving the Crypto Market Recovery Today

The digital currency world saw a major comeback on February 26, 2026, leaving many people asking: why crypto market is up today? After a week of heavy selling, the total value of all cryptocurrencies jumped over 5% to reach $2.36 trillion. At the time of writing, this sudden rally was led by Bitcoin (BTC), which soared to trade near $68,275. At the same time, Ethereum (ETH) rose by more than 9% to get back above the $2,000 level.

Source: CoinMarketCap Bitcoin Price

Experts believe several big events happened at the same time to push prices higher. Big investors are buying again, and some technical "squeezes" helped the market move up very fast. Below, we break down the three main reasons for this green day.

Main Factors Explaining Why Crypto Market Is Up Today

To understand why crypto market is up today, we have to look at where the big money is going and what traders are doing.

1. Huge Money Flowing Into Bitcoin ETFs

Big institutions are showing a lot of trust in the market again. In just 24 hours, $257 million flowed into spot Bitcoin ETFs. This is the largest amount of new money since January. When these large funds buy BTC, it reduces the supply and helps push the price from $62,000 back toward the $70,000 mark.

2. Short Liquidations Create a "Squeeze"

A lot of traders were betting that the market would keep falling. When the price started to rise, these "short" traders were forced to buy back their coins to stop their losses. This caused over $400 million in short liquidations. This forced buying acted like fuel for the fire, making the rally even stronger and faster.

3. Strong Earnings From Circle

Another reason why crypto ecosystem is up today is the good news from Circle, the company behind the USDC stablecoin. They reported $770 million in revenue for the last part of 2025, which was much higher than anyone expected. This shows that the business side of crypto is very healthy, which makes investors feel safer about putting their money into digital assets.

Source: X(formerly Twitter)

Altcoins Join the Party

While Bitcoin is the leader, other coins are doing even better. Polkadot (DOT) was the star of the day, jumping 20% to reach $1.58. Other popular coins like Solana, XRP, and Cardano all rose by more than 11%. This shows that people are not just buying BTC; they are looking for growth across the whole ecosystem.

Future Outlook: What Happens Next?

Even with the good news today, the market faces a big test tomorrow. About $10.5 billion worth of Bitcoin options are set to expire this Friday. This event often causes prices to swing up and down. If Bitcoin can stay above $70,000, we could see even higher prices next week. However, if investors decide to take their profits now, we might see a small drop back to $65,000.

Your Money Your Life Disclaimer: Cryptocurrency is a high-risk investment. Prices can change by 10% or more in a single day. This news report is for information only and is not financial advice. Always talk to a pro before you invest.