The cryptocurrency market is beginning to exhibit early signs of recovery following its most challenging month in three years, during which the price of bitcoin (BTC) fell to $78,000 and the total market capitalization of the sector dropped by more than $400 billion.
This price decline drove the Crypto Fear & Greed Index down to 10, a mark not seen since the bearish market of 2022. Fortunately, the index has since made a slight recovery to 20, remaining in the “extreme fear” category.
In the last 24 hours, Bitcoin’s price has climbed over 3% to trade above $84,400, while the broader CoinDesk 20 Index (CD20) increased by 1.5% during the same timeframe to reach 2,700. This uptick comes despite SOL experiencing a nearly 3% dip, with other components seeing gains for the day.
The cryptocurrency market seems to be gaining interest following an announcement from the White House that U.S. President Donald Trump will host a crypto summit on March 7. According to a press release, the summit will feature “notable founders, CEOs, and investors from the cryptocurrency industry, as well as members of the President’s Working Group on Digital Assets.”
This event signifies a continuation of the Trump administration’s supportive stance towards the cryptocurrency sector. This news follows the U.S. Securities and Exchange Commission (SEC) discontinuing lawsuits against Coinbase and Consensys, the developer of MetaMask, as well as investigations related to Robinhood, Gemini, Uniswap Labs, and OpenSea.
Moreover, BlackRock, the largest asset manager globally, has included a 1% to 2% allocation of its iShares Bitcoin Trust (IBIT) in one of its model portfolios. These models are designed for portfolio and rebalancing strategies implemented by advisors and platforms. This marks the first instance of BlackRock integrating IBIT into any of its model portfolios, potentially signaling a new surge in demand for bitcoin ETFs.
As of December 31, 2024, BlackRock’s model portfolios manage approximately $150 billion in assets.
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