Bitcoin Climbs Back Above $84K as Market Recovers from Brutal February Drop

The cryptocurrency market is showing early signs of recovery after enduring its worst month in three years. Bitcoin (BTC) has rebounded above $84,400, recovering from last week’s low of $78,000, which contributed to a $400 billion decline in the total crypto market capitalization.

The Crypto Fear & Greed Index, which plunged to 10—its lowest since the 2022 bear market—has now risen to 20, though sentiment remains in the “extreme fear” category. Over the past 24 hours, BTC has gained over 3%, while the CoinDesk 20 Index (CD20) is up 1.5% to 2,700. The broader market rally is somewhat dampened by a nearly 3% dip in Solana (SOL), while most other major assets are in the green.

Trump’s Crypto Summit Fuels Optimism

Investor sentiment improved after the White House announced that former U.S. President Donald Trump will host a high-profile crypto summit on March 7. The event will feature key figures from the digital asset space, including founders, CEOs, and investors, alongside members of the President’s Working Group on Digital Assets.

Trump’s administration has recently taken a pro-crypto stance, with regulators softening their approach. The SEC has dropped lawsuits against Coinbase and Consensys and ended investigations into Robinhood, Gemini, Uniswap Labs, and OpenSea—moves seen as positive for the industry.

BlackRock’s Bitcoin ETF Gains Institutional Recognition

Adding to the market’s momentum, BlackRock has included its iShares Bitcoin Trust (IBIT) in one of its model portfolios, with a 1% to 2% allocation. These model portfolios are widely used by financial advisors and platforms for portfolio construction and rebalancing, marking a significant step toward mainstream institutional adoption of Bitcoin ETFs.

BlackRock’s decision is seen as a milestone, as it is the first time the world’s largest asset manager has incorporated IBIT into its investment models. With approximately $150 billion in assets under management as of December 31, 2024, this move could accelerate demand for Bitcoin-based investment products.