Bitcoin Jumps 8% From Overnight Low as Crypto Market Decline Eases

Bitcoin saw an 8% recovery from its overnight low as some investors took advantage of the price dip below $79,000. However, the largest cryptocurrency by market cap appeared unstable, mirroring the fluctuations of other risk-oriented assets after a tense exchange between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy in the White House on Friday.

Currently, the leading cryptocurrency is trading above $84,500, reflecting a nearly 1% increase over the last 24 hours but still down 18% from the previous month—and far from its peak of over $108,000 reached in mid-January. Analysts continue to express skepticism about its short-term outlook.

“The recovery of Bitcoin from below $79K highlights the strength of dip-buying interest, particularly with liquidity remaining robust in the crypto market,” Joe DiPasquale, CEO of crypto asset management firm BitBull, stated in a message to Decrypt. “Nevertheless, the overall risk sentiment remains tenuous, and the recent downturn aligns with weakness across equities and other risk assets, attributed to geopolitical tensions emerging from Washington.”

DiPasquale also remarked: “Though BTC has exhibited relative strength, macro-driven volatility is anticipated to continue in the near future.”

The declines in the crypto markets coincide with investor concerns regarding surges in inflation, an impending global trade war prompted by tariffs from the Trump administration, and various other macroeconomic uncertainties, leading to a pullback from higher-risk assets, including leading cryptocurrencies. Additionally, a record $1.4 billion hack of the Bybit crypto exchange last Friday has further rattled the markets.

Significant digital currencies have experienced considerable declines over the past month, with Ethereum, the second-largest cryptocurrency by market capitalization, and its competitor Solana, the sixth-largest, dropping by 28% and 36% respectively. Meme coins, which had previously contributed to price rallies earlier in the year, have also seen significant downturns.

Key equity indexes, which have faced a turbulent week, continued to dip after showing some recovery earlier in the day following the tense dialogue between Trump and Zelenskyy. The tech-heavy Nasdaq and S&P 500 both registered slight declines.

The unprovoked invasion of Ukraine by Russia continues to pose significant challenges for the global economy, unsettling energy markets and threatening to disrupt trade.

Edited by Andrew Hayward