Bitcoin Price Update: A Rollercoaster Ride
The price of Bitcoin (BTC) experienced a significant recovery in U.S. trading on Friday morning, bouncing back to approximately $84,000. This follows an overnight drop that saw it plummet to around $78,000. Despite this rebound, Bitcoin remains over 15% lower compared to its value just one week ago.
In a notable shift, the Crypto Fear & Greed Index fell to 10 during the night—a level not witnessed since the depths of the 2022 bear market. However, it has since rebounded slightly, now resting at 16. This figure still indicates “extreme fear” and is far below last week’s reading of 55, which signified a state of “greed.” Historically, levels exceeding 75 are classified as “extreme greed,” a territory the index hasn’t entered since the time surrounding Donald Trump’s inauguration.
Even with Friday’s gains, Bitcoin is still down by more than 1% over the past 24 hours, while the broader CoinDesk 20 Index has experienced a decline of approximately 2%. Among major cryptocurrencies, Solana (SOL) stands out as the only one in the positive territory, climbing 5% following the announcement from the CME regarding the addition of SOL futures to its crypto platform, set to launch on March 17. Nonetheless, SOL remains down by 36% over the past month, significantly below the levels it reached prior to Donald Trump’s election victory in November.
Weekend Trading Dynamics
As the weekend approaches, it is important to note that all major stock markets will be closed, including foreign exchange markets, which have long been regarded as operating 24/7 but actually pause from Friday evening until Sunday night. In stark contrast, the cryptocurrency market remains active, with no breaks, leading many traders to wish for a pause from the ongoing volatility.
Standard Chartered’s Geoff Kendrick highlighted a concerning trend a couple of weeks ago, noting that weekends have not been particularly favorable for Bitcoin lately. While there was a modest uptick last weekend, the preceding weekends had generally seen sharp declines in price. Kendrick pondered in a Friday morning note, “Are risk assets really going to rally into [this] weekend now that we have received the bad news?” His inclination leans toward skepticism regarding a potential rally.
On the other hand, a contrarian perspective suggests that a rally could indeed be possible. With macroeconomic risks, particularly those stemming from President Trump’s aggressive tariff policies, seemingly factored into the market, the question arises: how much worse could the situation get? Trump has declared that tariffs of 25% will be imposed on imports from Mexico and Canada, and 10% on those from China, starting this coming Tuesday. Could the tariffs escalate to 50%?
Given the substantial drop in prices this week, including turmoil in stock markets, it could very well be that the bears are now in the most precarious position as we approach the weekend. Should a deal be struck that either averts or significantly postpones these tariffs, the market dynamics could shift dramatically.
Buckle up for what lies ahead.
