Bitcoin (BTC) and Ethereum (ETH) Show Strength Amid Market Volatility

The cryptocurrency market is witnessing a partial recovery following its recent sell-off, driven by a mix of bullish macroeconomic news and crypto-related developments.

The cryptocurrency market is showing signs of a partial recovery following its recent sell-off, driven by a mix of bullish macroeconomic news and crypto-related developments, analysis from Presto Research reveals.

Leading digital assets, such as Bitcoin (BTC) and Ethereum (ETH), have gained momentum, reflecting a renewed sense of optimism among investors. However, analysts caution that this rebound may be a temporary correction rather than a sustained rally.

Bitcoin and Ethereum: Strength Amid Market Volatility

Bitcoin, the world’s largest cryptocurrency, surged by 4.3% in the last 24 hours, reaching a price of $82,598, as displayed on The Block’s bitcoin price page.

Ethereum, the second-largest digital asset, also saw gains of 2.2%, bringing its price to $1,897.

While Bitcoin and Ethereum led the charge, major altcoins displayed even stronger gains:

* The overall crypto market saw a rise of 3.8%, showing renewed investor interest after the previous session’s sharp decline.

Crypto Market Recovers As Bitcoin Surpasses $81K

The crypto market is recovering as Bitcoin price rose above the $81,000 level.

The cryptocurrency market has shown signs of a minor rebound, with Bitcoin and Ethereum prices displaying slight gains in early Asian trading on Wednesday.

Bitcoin price rose 4.3% in the last 24 hours, reaching the $82,598 level, while Ethereum had a 2.2% gain, bringing its price to $1,897, according to The Block’s crypto prices.

The gains come after a period of intense sell-off in the crypto market, which saw Bitcoin price drop below the $77,000 level earlier this week.

The decline coincided with broader market turbulence, as the Dow Jones and S&P 500 posted their worst daily losses of 2024.

The downturn was triggered by U.S. President Donald Trump’s drastic tariff plans, which raised concerns among investors. The situation worsened after Trump acknowledged the possibility of a recession, describing the current economic situation as a “period of transition.”

Investors Await Crucial Inflation Data And Fed’s Next Move

The next major event for markets will be the release of the U.S. Consumer Price Index (CPI) data on Wednesday, a crucial indicator of inflation.

Investors will be closely watching to determine the trajectory of inflation and the potential response from the Federal Reserve.

“The CPI release will be a major event, as the entire market is focused on inflation and how the Fed will respond,” said Presto Research analyst Min Jung.

The next Federal Open Market Committee (FOMC) meeting is scheduled for March 19, where policymakers will evaluate the state of the economy and decide on any necessary adjustments to interest rates.

Currently, the CME Group’s FedWatch Tool indicates a 96% probability that the Fed will maintain the existing interest rate range of 4.25% to 4.50%.

Jung added, “We are seeing a market recovery, but it appears to be more of a small bounce after yesterday’s crash, rather than a sustained bullish run. There are no dominant headlines driving the move, and the equity market ended the day slightly negative, rather than continuing the significant sell-off.”

What Happened Today In The Crypto Market

Despite the crypto market showing signs of a minor rebound, experts believe that sustained growth will depend on macroeconomic policies and technical breakouts.

While tariffs have not yet caused widespread disruption to market momentum, volatility and macroeconomic risks still warrant caution, according to Kronos Research Chief Investment Officer Vincent Liu.

“Sustained growth hinges on policy clarity and technical breakouts,” Liu stated.

“While tariffs are not yet commonly placed to disrupt momentum, investors must remain aware of volatility and macroeconomic risks.”

As the market digests recent developments, the focus will remain on major economic indicators and technical price movements in the coming days.