Sharp Recovery of Cryptocurrencies After Mass Sell-Off

The cryptocurrency market is showing clear signs of a rebound after the sharp and widespread sell-off in recent weeks. As of February 22, 2026, Bitcoin is trading at around $67,470, while Ethereum has stabilized near $1,950, recovering from significantly lower levels observed earlier. The recovery movements indicate an attempt by the market to find a bottom after a sharp decline in prices.

Bitcoin and ETH Rebound Amid Volatility

Bitcoin has surpassed the psychological level of $65,000 and continues to demonstrate a recovery impulse. Ethereum also shows signs of stabilization after falling from higher levels. However, the 24-hour dynamics remain mixed: BTC decreased by 1.42%, and ETH fell by 1.89%, indicating that some selling pressure still persists.

According to Odaily analysts, the recovery is taking place against the backdrop of a complex macroeconomic environment, where tech stocks are experiencing instability, and the global risk appetite remains limited. Precious metals and crypto assets are moving in sync, reflecting the ongoing process of de-dollarization and portfolio reorientation by investors.

Warning Signs in the Derivatives Market

Options market data show extreme protective behavior among traders. Some market participants are placing puts with a strike price of only $20,000 for Bitcoin — a level that seemed incredibly low just a month ago. This indicates persistent deep concern about the possibility of further price declines and suggests ongoing hedging against extreme risks.

Panic sentiment, although somewhat eased after the sharp wave of sell-offs, is still felt in the risk premium structure. Traders and portfolio managers are clearly not ready to abandon protective positions in the near future.

Deleveraging and Short-Term Rebound

Analysts interpret the recent decline as a phase of forced liquidation of margin positions and a reduction in risk appetite. Sharp price movements often serve as catalysts for forced liquidations, which can create a short-term technical rebound as selling pressure eases.

However, the recovery remains fragile and depends on a range of external factors. Medium-term prospects for the crypto market will be determined by macro liquidity dynamics, the behavior of the tech stock sector, and the intensity of institutional capital flows. As long as global financial conditions remain tense, any recovery may only be a pause before new tests for the volatile crypto asset market.