The cryptocurrency market has been experiencing a rough patch, with the price of bitcoin (BTC) plummeting to $78,000 in a week that saw the space’s total market capitalization drop by over $400 billion. However, the market seems to be showing initial signs of recovery, with Bitcoin’s price rising more than 3% in the last 24 hours to now trade above $84,400.

The broader CoinDesk 20 Index (CD20) also rose 1.5% in the same period to 2,700. This performance is being affected by SOL dipping nearly 3% in the period, while other components are up for the day.

Market Sentiment Improves

The cryptocurrency market seemed to have caught a bid after the White House announced that U.S. President Donald Trump will host a crypto summit on March 7. Summit attendees are set to include “prominent founders, CEOs, and investors from the crypto industry, as well as members of the President’s Working Group on Digital Assets,” according to a press release.

This event is the latest sign of the Trump administration’s pro-crypto policies. It comes after the U.S. Securities and Exchange Commission (SEC) dropped lawsuits against Coinbase and MetaMask developer Consensys, as well as investigations into Robinhood, Gemini, Uniswap Labs, and OpenSea.

BlackRock’s Move

In addition, the world’s largest asset manager, BlackRock, has added a 1% to 2% allocation of its iShares Bitcoin Trust (IBIT) to one of its model portfolios. This is the first time BlackRock has decided to add IBIT to any of its models, opening up the potential for a new wave of demand for bitcoin ETFs.

As of December 31, 2024, BlackRock’s model portfolios manage approximately $150 billion in assets.

What’s Next?

The market is now waiting to see what the weekend will bring. Will the price of bitcoin continue to rise, or will it experience another dip? Only time will tell.

Conclusion

The cryptocurrency market has been experiencing a tough time, but it seems to be showing signs of recovery. With the price of bitcoin rising and the broader CD20 index also experiencing gains, it’s possible that the market may be turning a corner. However, only time will tell what the future holds for the cryptocurrency market.

FAQs

Q: What is the current price of bitcoin?

A: The current price of bitcoin is above $84,400.

Q: What is the current state of the cryptocurrency market?

A: The cryptocurrency market is showing initial signs of recovery, with the price of bitcoin rising more than 3% in the last 24 hours.

Q: What is the purpose of the crypto summit?

A: The crypto summit is being hosted by the White House and is set to include prominent founders, CEOs, and investors from the crypto industry, as well as members of the President’s Working Group on Digital Assets.

Q: What is BlackRock’s move?

A: BlackRock has added a 1% to 2% allocation of its iShares Bitcoin Trust (IBIT) to one of its model portfolios, which manage approximately $150 billion in assets.

Q: What’s next for the cryptocurrency market?

A: The market is waiting to see what the weekend will bring, with the price of bitcoin and the broader CD20 index potentially experiencing further gains or dips.