Bitcoin’s Recent Market Behavior

The price of Bitcoin (BTC) experienced a recovery on Friday, trading at approximately $84,000 following an overnight drop to the $78,000 mark. However, it remains over 15% lower than its price from a week ago.

Market Sentiment

The Crypto Fear & Greed Index, which reached a low of 10 — reflective of the extreme fear seen during the 2022 bear market — has recovered slightly, now at 16. This remains significantly below last week’s level of 55, which indicated greed in the market. Levels exceeding 75 are categorized as ’extreme greed.'

Despite the recent bounce, Bitcoin’s price has decreased by over 1% compared to 24 hours earlier, and the broader CoinDesk 20 Index has dropped by around 2%.

Market Highlights

Among the major cryptocurrencies, only Solana (SOL) has shown an increase of 5%, following the announcement from the CME regarding the launch of Solana futures on March 17. However, SOL’s price is still 36% lower over the past month, influenced by market reactions to prior events.

Looking Ahead to the Weekend

With the approaching weekend, when major stock markets and foreign exchange trading halt, cryptocurrency markets remain operational. Recent trends have shown weekend losses for Bitcoin, raising concerns for investors.

Geoff Kendrick from Standard Chartered noted that with upcoming tariffs promised by the Trump administration — 25% for Mexico and Canada and 10% for China — risk assets could face challenges. He questions the likelihood of positive performance over the weekend given the backdrop of these developments.

But, it may be that, given the steep declines already seen, the bearish outlook could turn out to be risky if unexpected good news emerges regarding negotiations around these tariffs.

Overall, traders are urged to brace themselves as the weekend unfolds.