Bitcoin Price Surges as Market Tests Post-Capitulation Range

The cryptocurrency market saw a significant surge on February 25, with Bitcoin price climbing over 7% to $69,000, marking one of its strongest daily moves in months. This rally comes after weeks of compressed trading and follows several price-based and miner-linked signals pointing to exhaustion in the recent drawdown.

According to CoinGecko, Bitcoin price fell close to 50% from its early-October high near $125,000 to a February low around $60,000. This decline placed Bitcoin below its estimated average production cost for the first time since late 2022, a zone that has often aligned with late-stage selling and price stabilization. Current estimates put average production near $66,000, meaning the market has spent weeks pricing Bitcoin below what many miners need to remain cash-flow neutral.

The rebound through $69,000 shifts focus back to price structure. Bitcoin bounced from the 0.786 Fibonacci retracement level, a key technical level that has historically marked significant price movements.

Meanwhile, Polkadot's native token DOT soared 23% on February 25, making it the top performer among large-cap cryptocurrencies. The rally comes just weeks before the network's planned supply halving, scheduled for March 14. The halving aims to lower inflation and make the token more scarce over time. However, some analysts suggest that the timing of the rally may be driven more by market sentiment than by Polkadot itself.

"We're seeing double-digit green candles across the altcoin space. DOT just happens to be one of today's leaders," said an analyst.

In other news, Hut 8, a Bitcoin miner, reported a Q4 loss despite a significant increase in compute revenue contribution. The company's digital asset losses mounted, even as it advanced a 15-year, $7 billion AI data center lease.

In a separate development, prediction market firm Kalshi accused two users, including an employee of popular streaming and reality show star MrBeast, of insider trading. The company suspended and fined the two users, and Beast Industries is investigating the situation with its employee.

As the market continues to test the post-capitulation range, investors are cautiously optimistic about the future of cryptocurrencies. With the Polkadot halving event on the horizon and Bitcoin price showing signs of recovery, it remains to be seen whether this rally will be sustained.

Sources:

• CoinGecko
• Polkadot
• Kalshi
• Hut 8
• CoinDesk