Bitcoin Rallies Above $84,000 as Crypto Market Rebounds

The cryptocurrency market rallied on Friday after two days of sideways trading, as U.S stock markets bounced and the dollar weakened.

The total cryptocurrency market cap is up nearly 2% to $2.84 trillion, according to CoinGecko. Bitcoin (BTC) rose 3.6% in the past 24 hours to $84,000, while Ethereum (ETH) gained 2.6% to $1,915. XRP climbed 2.8% to $2.34, and Solana (SOL) led with a 7% surge to $132.

In the same period, 80,001 traders were liquidated for a total of $212 million. Bitcoin (BTC) led with $91 million, followed by Ethereum (ETH) at $30 million, according to CoinGlass data.

Experts attribute the market’s current stagnation to uncertainty surrounding Federal Reserve policy, and geopolitical developments that have left investors cautious.

Macroeconomic Data

This week’s macroeconomic data, released by the Bureau of Labor Statistics, pointed to easing inflation pressures. The Consumer Price Index (CPI) report, published Wednesday, revealed that core prices rose 3.1% in February, marking the smallest annual increase since April 2021.

Meanwhile, the Producer Price Index (PPI) report released Thursday indicated that wholesale prices remained unchanged in February following a revised 0.6% increase in January. Year-over-year, PPI increased by 3.4%, slightly lower than January’s 3.6% rise.

While these reports initially sparked optimism, lingering uncertainty over the Federal Reserve’s next policy moves — combined with regulatory concerns and President Trump’s recent policies — has kept traders on edge.

Trump Uncertainty

“I believe sentiment-driven factors from President Trump are taking up the lion’s share,” said James Toledano, Chief Operating Officer at Unity Wallet. “We are seeing a broader crypto market downturn and if you zoom out, the entire vertical has dropped from a market cap of $3.3T on Feb 21st to $2.65T.”

Toledano noted that this 20% decline in under a month has fueled extreme FUD (fear, uncertainty, and doubt), with the Fear and Greed Index dropping to a low of 10, the lowest since June 2022.

“The recent policy announcements from the Trump administration have played a key role in dampening market sentiment,” he said, explaining that President Donald Trump’s executive order to establish a U.S. strategic Bitcoin reserve — composed only of assets forfeited to U.S. law enforcement — disappointed traders who had anticipated large-scale government purchases of digital assets.

Adding to the unease, the University of Michigan's index showed consumer confidence declined further this month, reflecting growing concerns over President Trump's tariff policy and its potential to drive inflation higher.