Bitcoin managed to recover losses from Monday’s price crash triggered by President Donald Trump’s confirmation that new tariffs on Canada and Mexico will take effect.
The total cryptocurrency market cap, which had dipped to a weekly low of $2.9 trillion on Tuesday, had stabilised over $3 trillion by late Asian trading hours on Wednesday.
Market sentiment had improved, but only slightly and remained within the extreme fear territory at 20.
The altcoin market staged a recovery, with 14 of the top 99 tokens turning green, while most others remained within a 5% drop.
Will Bitcoin price go up?
Bitcoin dropped below $83,000 as traders reacted to Donald Trump’s confirmation of new tariffs on Canada and Mexico.
However, it has since recovered as the market bought the dip, pushing prices to an intraday high of $90,364 on March 5 before pulling back.
After starting the day just above $80,000, Bitcoin appeared to be recovering from its earlier losses.
At last check, it was up over 7%, trading at $88,684.03.
Fundstrat’s head of research, Tom Lee, expects Bitcoin to form a market bottom as early as this week, suggesting that BTC could soon rebound from lower levels.
According to him, while short-term volatility is likely, this bottoming phase could push Bitcoin down to $62,000 this month— marking one of its lowest points in the past four months—before it could bounce back to previous highs.
Meanwhile, network economist Timothy Peterson sees a different scenario.
In a recent post, he said there is a “95% chance” that Bitcoin will not drop below $69,000. His analysis, based on historical price trends, suggests that BTC’s downside risk is limited.
Lowest Price Forward doesn’t tell you where Bitcoin will be. It tells you where Bitcoin won’t be. There is a 95% chance it won’t fall below $69k.
CryptoQuant contributor XBTManager, however, believes Bitcoin’s current “pullback phase after the ATH” could extend “due to liquidity needs.”
The analyst explained that current short-term holders were dominating the market and Bitcoin needs long-term holders to start buying before it can make a comeback.
Echoing a similar sentiment, pseudonymous analyst Crypto Caesar speculated that the pullback phase might be nearing an end.
One potential catalyst for Bitcoin’s next move is the White House Crypto Summit on March 7, where Trump will discuss crypto regulations with government and industry leaders.
Pro-crypto developments could drive further gains, while regulatory uncertainty might keep prices in check.
Altcoin market gains
Over the past 24 hours, the total altcoin market cap surged 2.29% to settle above $1.34 trillion.
The altcoin season index held steady at 15, indicating that Bitcoin’s dominance continues to drive the market.
Nevertheless, a number of high-cap altcoins had posted double-digit gains on the day.
The top gainers for the day were:
Bitcoin Cash
Bitcoin Cash (BCH) surged 26% over the last 24 hours, exchanging hands at $387.92 at the time of writing, while bringing its market cap to $7.69 billion.
The altcoin’s trading volume was up 52%, hovering over $861.9 million, while its circulating supply stood at 19.83 million BCH.
Source: CoinMarketCap
BCH had a strong day, thanks to data from Bitcoin Cash Explorer showing a bullish trend.
The report revealed that BCH transactions hit a new all-time high of 3.6 today, indicating a jump in interest from traders, increased liquidity, and more activity on the BCH blockchain.
Further, BCH’s open interest jumped from $174.48 million on Sunday to $343.45 million today, the highest since December 9.
An increase in OI means more money is flowing into the market as traders increasingly bet on the related crypto asset’s price.
Jito
Over the past day, Jito (JTO) recovered from its recent fall with a 24% rally to $2.58 while its market cap was seated at $777 million.
Its daily trading volume stood nearly 40% higher at over $101 million.
Source: CoinMarketCap
There was no particular driver behind the current rally.
Jito, the largest liquid staking platform on Solana, is now the second most profitable entity in crypto after Tether and Tron, as it raked in over $408 million in fees this year.
It has outperformed major players like Ethereum and Solana and is generating more revenue than top DeFi platforms like Aave, Uniswap, and Lido Finance.
Its rising fees align with growth in total value-locked (TVL). DeFi Llama reports that Jito’s TVL has hit $2.26 billion, up 8.65% in the past week.
Chainlink
Chainlink (LINK) was up nearly 15% over the past day as it traded at $15.74 at press time.
Its market cap was standing at $10.04 billion, while its daily trading volume stood 13% higher than the previous day at nearly $954 million.
Source: CoinMarketCap
Today’s gains were largely driven by reports that Chainlink co-founder Sergey Nazarov will attend the cryptocurrency summit hosted by US President Donald Trump.
This has sparked investor anticipation that Chainlink could be added to Trump’s crypto reserve plan, which already includes Bitcoin and Ethereum.
Additionally, the altcoin gained traction as the project is based in the US, potentially benefiting from Trump’s narrative to position the country as the “crypto capital of the world.”
Source : https://invezz.com/news/2025/03/05/crypto-recap-bitcoin-briefly-reclaims-90k-bch-jto-leads-the-days-gains/
