Bitcoin Price Resurgence Amid Extreme Market Fear and Tariff Anxiety
Bitcoin has rebounded to $84,000 after previously dropping to $78,000, although it remains over 15% lower than a week ago. The Crypto Fear & Greed Index reflects extreme investor anxiety, marking levels not seen since the 2022 bear market. Solana has gained 5% amid plans for futures, while broader market trends raise concerns for the upcoming weekend due to looming tariffs.
On Friday, Bitcoin (BTC) briefly recovered to approximately $84,000 following a decline that pushed its price down to around $78,000 overnight. However, this increase still leaves Bitcoin down over 15% from its price a week earlier. Concurrently, the Crypto Fear & Greed Index plummeted to a low of 10, reflecting high levels of investor anxiety, but has since recovered slightly to 16, remaining within the “extreme fear” category, significantly lower than last week’s reading of 55.
Among the major cryptocurrencies, only Solana (SOL) experienced an increase of 5%, thanks to the announcement of planned futures for the cryptocurrency on March 17 by the CME. Despite this positive movement, SOL has dropped 36% in value over the past month, significantly below its pre-election levels following Donald Trump’s November victory. The current downward trend raises concerns as weekends have typically not been favorable for Bitcoin.
Recent reports indicate that the markets could face further instability this weekend due to potential punitive tariffs set to be implemented against Mexico, Canada, and China. Standard Chartered’s Geoff Kendrick commented that historical trends suggest that risk assets like Bitcoin may struggle during weekends amidst such economic stressors. Nevertheless, there exists a contrarian perspective that if a resolution to avert these tariffs were to be achieved, it might prompt a turnaround in market sentiment.
Traders may be anxious as both stock and foreign exchange markets close for the weekend; however, the cryptocurrency market remains active. Observers are left questioning whether the adverse news is already priced into the market, with the possibility that bears may find themselves in a precarious position if positive developments arise.
Stephen Alpher, CoinDesk’s Managing Editor for Markets, emphasizes the uncertainty that looms over the weekend as traders navigate the potential for drastic shifts in market dynamics.
In conclusion, Bitcoin’s recent bounce to $84,000 comes amidst a background of significant market volatility, as reflected in the Crypto Fear & Greed Index. While the weekend historically presents challenges for cryptocurrency prices, there is the potential for changes in sentiment should unforeseen positive news emerge regarding tariffs. Investors remain attentive to the evolving landscape, balancing risks with potential rewards in the cryptocurrency market.
Original Source: www.coindesk.com
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