Bitcoin's Price Rises 0.745% Amid Bearish Market Sentiment

Bitcoin's latest price was $84910.28, up 0.745% in the last 24 hours. The Bitcoin network activity has slowed down, mirroring bear market levels seen in previous years. This slowdown in network adoption, which includes active addresses, block space demand, and transaction count per block, has historically capped Bitcoin's upside in the near term. This trend suggests that Bitcoin's recovery may face challenges in the short term.

Despite the overall bearish sentiment, there are signs of accumulation by some large players. The Accumulation Trend Score for Bitcoin is at its highest year-to-date, indicating that larger cohorts are stepping in to accumulate despite recent price weakness. This suggests that some whales view current levels as entry points rather than selling opportunities.

In the first quarter of 2025, the cryptocurrency market, led by Bitcoin, lost nearly one-fifth of its value, negating the gains made towards the end of 2024. This sharp plunge marked a turnaround before the inauguration of Donald Trump as US president, in stark contrast to last year’s ramp up. Bitcoin insulated itself reasonably from the turbulence in other cryptocurrencies, so that its market share reached nearly 60%, the highest in four years. Compared with Bitcoin during this period, gold and US Treasury bonds were traditional safe-haven investments with lower performance. Compared to Ethereum, however, the situation was much worse. Its price fell by 45%, essentially wiping out all gains in 2024. Its market share dropped to almost 8%, the lowest it has been since the end of 2019. As it has been observed by most analysts, this downturn is not something new since more and more activities have shifted toward “Layer 2” networks built atop Ethereum and not using the Ethereum main network.

Binance, the world’s largest cryptocurrency exchange, is actively involved in discussions with several countries to help them establish a Bitcoin reserve. CEO Richard Teng stated that the exchange is advising multiple governments on establishing a strategic Bitcoin reserve and formulating crypto asset regulation. Teng believes the US’s crypto-friendly stance has prompted several countries to approach the exchange for help setting up and handling a potential Bitcoin reserve. The Binance CEO also lauded pro-crypto policy developments in the US, including discussions around a national Bitcoin reserve and a digital asset stockpile. Recently, the governments of Pakistan and Kyrgyzstan announced a collaboration with Binance and former CEO Changpeng Zhao on crypto regulations.

Bitcoin’s upward trajectory has waned after a strong recovery phase that saw the flagship cryptocurrency rebound from a low of $75,000 to reclaim $80,000 and tap $86,000 before declining. BTC’s slight pullback comes after registering a 10% increase over seven days, helping it recover from recent declines triggered by macroeconomic pressures, including tariffs and trade tensions. However, while the price action suggests a healthy retracement or consolidation phase, market sentiment tells a more complicated story. According to a CryptoQuant analyst, futures sentiment has not mirrored the price surge, suggesting derivatives traders are being cautious. The divergence between the price action and market sentiment could indicate growing uncertainty or a broader shift in investor behavior.

The tone of Bitcoin-related social media chatter has turned bullish, according to the crypto analytics platform Santiment. The change in sentiment comes despite BTC struggling to break above $85,000. Santiment stated in a post on X, “Traders are showing optimism that BTC can regain $90K, which will likely be dependent on tariff and global economy news as the week progresses.” Santiment’s social media tracker, used to gauge how social media users feel about crypto based on the tone of their posts, moved into bullish territory. Before its latest move, the indicator was in neutral territory with a score of around 1,606, indicating that social media users were unsure about BTC’s trajectory.

US stocks fell on Wednesday after Nvidia flagged $5.5 billion in tariff-related charges, and Federal Reserve Chair Jerome Powell warned about the economic risks due to President Trump’s economic policies. As a result of the chaos, the S&P 500 dropped over 2% while the Dow Jones Industrial Average fell 1.7%. Meanwhile, the Nasdaq Composite dropped by around 3%, inching closer to bear market territory. Nvidia shares plunged almost 10% after the company revealed it would take a $5.5 billion charge due to export curbs imposed by the US government. The US has banned the company from exporting its H20 graphics processors to the Chinese market. Despite the selloffs, BTC and other cryptocurrencies maintained their position, with the flagship cryptocurrency holding above $84,000 despite growing market pressure.