Bitcoin Rebounds as Market Recovers Amid Trump’s Crypto Summit Announcement

The cryptocurrency market is showing signs of recovery after suffering its worst month in three years. Bitcoin (BTC) briefly dropped to $78,000, wiping out over $400 billion from the market’s total capitalization. The decline pushed the Crypto Fear & Greed Index to 10, a level unseen since the 2022 bear market. However, sentiment has slightly improved, with the index rebounding to 20, though it remains in the “extreme fear” zone.

BTC has since risen over 3% in the past 24 hours, trading above $84,400. The broader CoinDesk 20 Index (CD20) gained 1.5%, reaching 2,700, despite Solana (SOL) slipping nearly 3%. Market momentum strengthened following news that U.S. President Donald Trump will host a crypto summit on March 7. The event will gather top industry CEOs, investors, and government officials to discuss digital asset policies, reinforcing the administration’s pro-crypto stance.

Regulatory developments have also played a role in shifting sentiment. The U.S. Securities and Exchange Commission (SEC) has dropped lawsuits against Coinbase and Consensys and halted investigations into Robinhood, Gemini, Uniswap Labs, and OpenSea. This easing of regulatory pressure is seen as a bullish signal for the market.

Meanwhile, BlackRock, the world’s largest asset manager, has allocated 1%-2% of its iShares Bitcoin Trust (IBIT) into one of its model portfolios for the first time. With BlackRock’s model portfolios managing around $150 billion in assets as of December 31, 2024, this move could drive fresh demand for Bitcoin ETFs.

With improving sentiment, institutional interest, and regulatory relief, the crypto market appears poised for a potential rebound.