Bitcoin (BTC) has rebounded after plunging to a low of $78,457 late on Friday as buyers finally stepped in to prevent a further decline. The flagship cryptocurrency is up nearly 5% over the past 24 hours but remains below $85,000. BTC experienced a bounce after President Donald Trump announced a crypto summit on March 7, triggering an immediate bullish reaction in the market. BTC Bounces As White House Prepares For Crypto Summit Bitcoin (BTC) finally ended its losing streak as it rallied from a low of $78,457 to hit $86,570 before settling at its current level of $84,600. The rally can be attributed to the White House announcing plans to host a Crypto Summit on March 7, triggering an immediate bullish reaction from the market. Ethereum (ETH), Cardano (ADA), Ripple (XRP), and several other coins rallied following the news. According to reports, Trump will discuss the future of digital assets, leading to speculation the government may be readying to adopt crypto-friendly policies. “White House just announced its first-ever Crypto Summit on March 7 Trump, top CEOs, big money - they’re all in the room This ain’t just another meeting, this is THE SIGNAL - Regulatory clarity - Mass adoption - Or just insiders front-running again?” Trading volumes and market activity also registered a significant jump, signaling growing anticipation among institutional and retail investors. While investor sentiment is bullish in the short term, analysts believe several macroeconomic factors could challenge Bitcoin’s rally. A Macroeconomic Threat Despite BTC’s recovery, several external macroeconomic factors could limit further upside. President Trump reiterated plans to impose 25% tariffs on Mexican and Canadian imports and an additional 10% tariff on Chinese goods, escalating the prospect of a trade war. The developments strengthened the US dollar, making risk assets like BTC vulnerable to corrections. Meanwhile, the Personal Consumption Expenditures (PCE) inflation report registered a 0.3% increase in January, bringing the annual rate to 2.5%. Core PCE slowed to 2.6% from December’s 2.9%. While the data was along expected lines, it reinforced the likelihood of the Fed keeping interest rates unchanged. Standard Chartered Still Bullish About BTC Standard Chartered is still bullish about crypto, expecting it to hit $200,000 by the end of the year and $500,000 over the next few years, despite the recent selloff. Geoffrey Kendrick, head of digital asset research at Standard Chartered, said he expects BTC to hit $200,000 this year. Kendrick stated, “Within the crypto ecosystem, what we need are traditional financial players, like Standard Chartered, BlackRock, and others that have the ETFs now to really step in. As the industry becomes more institutionalized, it should be safer.” He added that increased institutional crypto adoption and greater regulatory clarity in the US would reduce volatility over time. “That should add to that medium-term, top-side potential, which for me is bitcoin up to $200,000 this year and $500,000 before Trump leaves office.” BTC sank to levels not seen since November 2024 as a bearish week took its toll on the flagship asset. BTC and other cryptocurrencies declined due to uncertainty around tariffs and other macroeconomic and geopolitical factors. “Risk assets don’t like uncertainty and so that’s what we’ve seen. We’ve seen tech stocks in the U.S. coming lower. That should further legitimize, so you’ll see more U.S. banks involved. You’ll see larger institutions in the U.S. continue to push through.” Bitcoin (BTC) Price Analysis Bitcoin (BTC) slumped to a low of $78,457 on February 28. However, buyers finally stepped in at lower levels, allowing the price to climb above $80,000 and move to its current level. According to CryptoQuant founder and CEO Ki Young Ju, selling after a 30% correction could be a mistake as BTC rose to a new all-time high after dropping 53% in 2021. Some whales have already begun accumulating, with one buying 4,000 BTC worth $344 million when the price was between $82,000 and $85,000. The whale, known as Spoofy, has a reputation for building its position extremely slowly and may buy more if the market drops further. The decline has not changed Standard Chartered’s long-term view of the asset, with the financial giant expecting BTC to hit $200,000 by the end of the year. BTC has traded in the red since the weekend, falling into the red after a move past the 20-day SMA on Thursday. Bears defended this level as markets turned red on Friday following the Bybit hack. As a result, BTC fell over 2% to slip below the 20-day SMA and settle at $96,184. BTC registered a marginal increase on Saturday but fell back in the red on Sunday to settle at $96,084 after a marginal decline. Bearish sentiment intensified on Monday as BTC plunged nearly 5% to go below $95,000 and settle at $91,622. Source: TradingView BTC fell below $90,000 on Tuesday, dropping to an intraday low of $85,985. The price recovered from this level but could not reclaim $90,000 and ultimately settled at $88,654. Bearish sentiment intensified on Wednesday as BTC dropped over 5%, slipping below $85,000 and settling at $84,129. Despite the overwhelming bearish sentiment, BTC registered a recovery on Thursday, rising to an intraday high of $87,045 before settling at $84,657, ultimately registering a marginal increase. Bearish sentiment intensified as BTC plunged below $80,000, falling to an intraday low of $78,179. However, it recovered from this level to reclaim $80,000, move back above the 200-day SMA, and settle at $84,578. The current session sees BTC marginally up as it looks to reclaim $85,000. Buyers must reclaim $85,000 and push towards $90,000 to prevent a downtrend. If they reclaim these levels it could suggest a short-term bottom is in place. On the other hand, if BTC falls back into the red, it could drop below $75,000. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
