Bitcoin has surged past the $90,000 mark, rebounding from its recent dip below $83,000 following the market crash triggered by former President Donald Trump’s tariff announcement. The leading cryptocurrency briefly peaked at $90,364 on March 5 at 10:40 UTC, marking a significant recovery from its previous downturn.
Bitcoin’s Price Movement and Market Impact
According to crypto.news data, Bitcoin began the day trading just above $80,000 before experiencing an 8% surge to reach $90,301 at press time. Unlike previous instances where Bitcoin corrected sharply after reaching new highs, it has so far maintained its position above the $90,000 threshold, only experiencing minor fluctuations.
Despite the price surge, Bitcoin’s 24-hour trading volume has declined by 20.8% to $57.4 billion. However, its market capitalization has grown by 7.4%, reaching $1.78 trillion, reflecting the overall bullish sentiment.
Will Bitcoin Stay Above $90K?
Fundstrat’s head of research, Tom Lee, believes Bitcoin could establish a market bottom as early as this week. He predicts that before a sustained recovery, BTC could face short-term volatility, potentially dropping as low as $62,000 in the near term.
On the other hand, network economist Timothy Peterson provided a more optimistic outlook, stating that historical data suggests a 95% probability that Bitcoin will not fall below $69,000.
The Trump Effect on Bitcoin’s Rally
Bitcoin saw a significant boost after Trump reaffirmed his commitment to establishing a U.S. crypto reserve, surging by 8% and reaching over $93,000. However, the rally was short-lived, as Bitcoin quickly dropped nearly 10% to $83,180 after Trump confirmed that trade tariffs on Canada and Mexico would take effect on March 4.
Market Outlook
While Bitcoin’s climb above $90,000 is a positive sign, traders remain cautious amid ongoing market volatility. The next few days will be critical in determining whether Bitcoin can solidify its position or if another pullback is imminent.
