The cryptocurrency market is beginning to recover from its worst month in three years, with Bitcoin (BTC) bouncing back above $85,000 (at press time) after a sharp decline that wiped out over $400 billion in total market capitalization. The market downturn saw BTC fall as low as $78,000, triggering widespread fear among investors.
The Crypto Fear & Greed Index, which reflects investor sentiment, had plunged to 10—levels last seen during the 2022 bear market. However, the index has since climbed to 20, though it remains in the “extreme fear” zone.
Broader market indicators also suggest a cautious rebound. The CoinDesk 20 Index (CD20), which tracks major cryptocurrencies, rose 1.5% in the last 24 hours to 2,700. However, performance within the index has been mixed, with Solana (SOL) declining nearly 3% during the same period, while other assets posted gains.
A key factor contributing to the market’s turnaround appears to be a policy shift from the White House. U.S. President Donald Trump is set to host a crypto summit on March 7, bringing together industry leaders, investors, and members of the President’s Working Group on Digital Assets.
The move signals growing engagement between regulators and the crypto sector, following the U.S. Securities and Exchange Commission’s (SEC) recent decision to drop lawsuits against Coinbase and MetaMask developer Consensys. The SEC has also ended investigations into Robinhood, Gemini, Uniswap Labs, and OpenSea, further easing regulatory concerns.
In another significant development, BlackRock, the world’s largest asset manager, has included a 1% to 2% allocation of its iShares Bitcoin Trust (IBIT) in one of its model portfolios. These portfolios, which guide investment strategies executed by advisors and platforms, collectively manage approximately $150 billion in assets. This marks the first time BlackRock has added IBIT to any of its models, potentially signaling increased institutional adoption of Bitcoin exchange-traded funds (ETFs).
While market volatility remains high, these recent developments suggest a renewed investor interest in cryptocurrencies, with Bitcoin leading the recovery effort. The coming weeks may provide further clarity on whether this rebound is sustainable or another temporary uptick in a highly uncertain market.
Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by Harshajit Sarmah.
