Bitcoin Rebounds to $84K After Plunge, but Market Still in ‘Extreme Fear’
Bitcoin (BTC) saw a sharp recovery in Friday morning U.S. trading, bouncing back to around $84,000 after briefly dipping to the $78,000 range overnight. However, the cryptocurrency remains more than 15% lower compared to its price just a week ago.
Market sentiment remains fragile, with the Crypto Fear & Greed Index hitting 10 overnight—its lowest level since the depths of the 2022 bear market. While the index has since rebounded to 16, it remains firmly in the “extreme fear” category. Just last week, the gauge stood at 55, signaling “greed.” The index hasn’t touched “extreme greed” territory (above 75) since the period surrounding Donald Trump’s inauguration.
Despite Friday’s gains, bitcoin is still down over 1% in the past 24 hours, while the broader CoinDesk 20 Index has slipped roughly 2%. One exception in the major crypto markets is Solana (SOL), which is up 5% following CME Group’s announcement that it will launch SOL futures on March 17. Even with this rally, SOL remains 36% lower over the past month and well below its price levels before Trump’s election victory in November.
Weekend Volatility Looms
Unlike traditional financial markets, which shut down over the weekend, crypto trades 24/7—and lately, weekends have been especially turbulent.
Geoff Kendrick of Standard Chartered recently pointed out that weekends have not been favorable for bitcoin, with a pattern of sharply lower prices. While last weekend saw a slight positive move, previous weekends have been dominated by declines.
Looking ahead, traders are weighing the impact of President Trump’s aggressive tariff policies. The White House has confirmed new tariffs set to take effect Tuesday—25% on goods from Mexico and Canada and 10% on Chinese imports.
The key question now: Is the worst already priced in?
Some analysts suggest that markets may have already adjusted for the tariff risk, meaning the bearish sentiment could be overextended. If a deal were reached to delay or soften the tariffs, it could put short sellers in a vulnerable position, triggering a sharp rally over the weekend.
Either way, volatility is expected to remain high. Traders should prepare for a potentially wild 48 hours ahead.
Buckle up.
