The leading cryptocurrency recovers from a sharp decline, sparking debate on its sustainability.
Bitcoin Breaks $90K Barrier
Bitcoin has surged past $90,000, rebounding from a dip below $83,000. The crypto market initially slumped following President Donald Trump’s tariff announcement, but BTC has regained momentum.
BTC Price Recovery Gains Strength
According to crypto.news, Bitcoin briefly hit $90,364 on March 5 at 10:40 UTC. It began the day just above $80,000 and steadily climbed back, signaling renewed investor confidence.
At press time, Bitcoin is trading at $90,301, reflecting an 8% increase. Unlike previous volatile swings, BTC has held above the $90K level without an immediate correction. Over the past week, Bitcoin has gained 1.9%, but its monthly performance remains down by 6.1%.
Market Capitalization and Trading Volume Shift
Bitcoin’s market capitalization has grown by 7.4%, reaching $1.78 trillion. However, its 24-hour trading volume has dropped 20.8%, now standing at $57.4 billion.
Will Bitcoin Maintain Its Rally?
Fundstrat’s head of research, Tom Lee, predicts Bitcoin is nearing a market bottom. He expects short-term volatility before BTC stabilizes, warning that it could drop to $62,000 this month.
“There is a 95% chance that Bitcoin will not fall below $69,000,” said Network economist Timothy Peterson, citing historical price trends.
Impact of Trump’s Crypto Reserve Plans
Bitcoin saw an 8% surge after Trump reaffirmed his plans for a U.S. crypto reserve, briefly pushing it above $93,000. However, the rally was short-lived as BTC fell nearly 10% to $83,180 after Trump announced impending trade tariffs on Canada and Mexico.
Investor Sentiment Remains Cautious
Despite its recovery, analysts remain cautious about Bitcoin’s trajectory. Market uncertainty, regulatory developments, and global trade policies continue to influence price movements. The upcoming White House Crypto Summit may provide further insights into the administration’s stance on digital assets.
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