The cryptocurrency market staged a robust recovery on February 14, 2026, with the total market capitalization climbing 4% to approximately $2.36 trillion. This rally followed a period of extreme fear, as indicated by a Crypto Fear & Greed Index reading of just 11 points.
The primary catalyst for the surge was cooler-than-expected U.S. inflation data. The Consumer Price Index (CPI) report released on February 13 showed annual inflation slowed to 2.4% in January, down from 2.7% in December. This data eased pressure on the Federal Reserve to maintain high interest rates, prompting investors to move capital back into risk assets like cryptocurrencies.
Simultaneously, spot Bitcoin and Ethereum ETFs saw a return of institutional inflows, providing a significant boost to market confidence. On February 13, Bitcoin ETFs recorded net inflows of $15.1 million, led by Fidelity's $12 million. Ethereum ETFs also attracted $10.2 million in inflows, with Grayscale leading the pack. This reversed a prior trend of outflows and signaled renewed institutional interest.
Large-scale short liquidations further accelerated the upward momentum. Over 24 hours, total liquidations reached $287.68 million, with roughly $250 million coming from short positions. This forced closure of bearish bets created additional buying pressure. On-chain data also supported the rally, showing a decrease in Bitcoin and Ethereum moving to exchanges, suggesting a shift toward holding rather than selling.
Bitcoin (BTC) led the charge, rising 5% to trade around $69,563, firmly holding support above $65,000. Major altcoins followed suit: Ethereum (ETH) gained 6% to near $2,078, Solana (SOL) jumped nearly 9% to around $86, and XRP increased by 7%. The DeFi sector also saw growth, with Total Value Locked (TVL) rising 2.47% to $97.4 billion, led by Aave.
