Bitcoin Daily Commentary - 5 March 2025

Bitcoin's price is up 0.8% over the past 24 hours, currently trading at $87,000. Meanwhile Bitcoin's dominance has fallen to 60.3%, from 60.5% yesterday.

Despite the recent recovery in markets, the Bitcoin Fear & Greed Index has fallen back into Extreme Fear territory, with a reading of 20.

A big reversal in risk markets overnight has seen bitcoin climb 10% from its weakest level of the session, hitting a peak of $89,000. For now, Bitcoin’s immediate fate pivots on its ability to anchor above $85,000. A decisive move past $90,000 could ignite a challenge of the $95,000 to $100,000 levels. Conversely, crumbling support may resurrect bears, dragging prices toward $81,000 or below.

It's been a difficult few weeks for risk assets, but the downturn may also be creating the conditions for an eventual rebound. It wasn't long ago when markets had all but written off the chance for any Federal Reserve rate cuts in 2025 and the 10-year Treasury yield was threatening to rise above 5%. The tariffs, though, have combined with some weakish economic data and the tumble in markets to change that calculation. Interest rate traders have now fully priced in three or more Fed rate cuts this year, with the first move coming as soon as May.

El Salvador has expanded its Bitcoin holdings once again, purchasing five additional BTC. The acquisition brings the country’s total Bitcoin reserves to 6,100 BTC, currently valued at around $510 million. Despite ongoing scrutiny from the International Monetary Fund, El Salvador has maintained its commitment to Bitcoin, following a strategy of acquiring one BTC per day since November 2022.