Crypto market rebounds sharply with ETH +8.5% as gold benefits from budget deficit
Last Updated on 26 February 2026 by CryptoTips.eu
Bitcoin rebounds strongly and climbs back above $68,000 after a reversal from recent lows. The entire crypto market turns green, with Ethereum standing out at +8.58%.
Analyst Michaël van de Poppe expects a rally toward $75,000 in early March. Meanwhile, gold continues to break records, fueled by a US budget deficit of $1.9 trillion and tighter silver supplies due to the reopening of Chinese markets and unrest in Mexico.
Bitcoin recovers after a sweep of the bottom
The 4 hour chart shows Bitcoin making a brief sweep of the lows around $65,369, followed by an immediate bounce. The price climbs to $68,473, an increase of 4.61% in 24 hours. Van de Poppe points out that Bitcoin is back in an uptrend on lower timeframes and expects a move toward $75,000 at the beginning of March. The first resistance level lies around $74,505.
There we go, #Bitcoin grinds back upwards.
— Michaël van de Poppe (@CryptoMichNL) February 26, 2026
Strong move and it's back into a lower timeframe uptrend.
From that, I assume we'll start to see a rally towards $75K at the start of March. pic.twitter.com/zfyGJh3xKV
The broader market follows. Ethereum jumps 8.58% to $2,074, Solana gains 7.25% to $88.29, and Dogecoin rises 7.43% to $0.10. XRP climbs 5.27% to $1.45 and BNB increases 4.81% to $629. Total market capitalization stands at $2.47 trillion.
Notably, the Fear & Greed Index, with a value of 11, remains in extreme fear territory, while prices are recovering sharply. This discrepancy often indicates that the bottom is near or already behind us.
Gold and silver benefit from Chinese demand and Mexican unrest
Chinese markets reopen after the Lunar New Year and immediately confirm strong demand for both silver and gold. The premium on silver in China compared to the West remains intact, and inventories on the SGE and SHFE exchanges continue to decline. This points to a physical market that remains tight, rather than just paper movements.
At the same time, tensions in Mexico are increasing. As the world’s largest silver producer, this is relevant for global supply. Drug related violence forces mining companies to deploy additional security, absorb higher costs, or temporarily pause operations. Less stable production in Mexico potentially means less silver on the global market, which could further support prices. Gold now stands at $5,190 and appears unstoppable.
US debt problem pushes capital toward gold
The fundamental reason behind gold’s strength largely lies in the US budget deficit. According to the Congressional Budget Office, US revenues in 2026 are expected to be around $5.6 trillion, while expenditures rise to approximately $7.4 trillion. That results in a deficit of about $1.9 trillion per year, meaning spending is 32% higher than income.
Per American, this equals roughly $5,500 in additional debt per year. For a family of four, that amounts to $22,000. Total government debt is approaching $39 trillion, and the trade deficit has hovered around $900 billion per year for years.
Central banks have drawn their conclusions and have been buying record amounts of gold for several years. Gold is the opposite of debt, universally accepted, scarce, physical, and independent. For Bitcoin investors, the recovery above $68,000 offers hope, but the real question remains whether crypto can decouple from broader risk sentiment while gold dominates as the ultimate safe haven.
