Bitcoin rallied sharply in early trade on March 5, briefly approaching the $74,000 mark before trimming gains as the session progressed. By 8:45 am IST, the cryptocurrency was trading just above $72,569, reflecting a 6.24 percent rise over the previous 24 hours.
The move signals a rebound in prices after the correction seen earlier this year. However, despite the strong daily performance, market participants remain watchful as volatility persists.
Recovery Gains Pace, But Caution Lingers
According to Riya Sehgal, Research Analyst at Delta Exchange, the broader crypto market is witnessing a measured recovery following the early year downturn. Renewed institutional interest has played a key role in supporting the recent uptrend.
Even so, caution remains. Nearly 43 percent of Bitcoin’s circulating supply is currently underwater, which may create potential selling pressure if prices continue to rise. In addition, derivatives market data suggest that traders are actively hedging against downside risks, indicating that confidence has not fully returned.
Sehgal noted that a decisive move above the $76,000 to $78,000 range, which aligns with the average cost basis of large holders, could indicate stronger bullish momentum. Until then, macroeconomic developments and market positioning are likely to keep volatility elevated.
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Altcoins Track Bitcoin’s Momentum
The broader cryptocurrency market mirrored Bitcoin’s upward movement. Ethereum posted a 7.22 percent gain over the last 24 hours, while BNB rose 3.39 percent. XRP advanced 4.55 percent, and Solana climbed 4.08 percent.
Other major tokens also recorded gains. TRON was up 2.53 percent, Dogecoin increased 7.21 percent, and Cardano added 4.07 percent. In contrast, stablecoins Tether and USDC edged lower by 0.01 percent and 0.03 percent respectively during the same period.
Market activity extended beyond the largest assets. According to the CoinDCX Research Team, Decred emerged as the top gainer of the day with a rise of more than 11 percent. SPX6900 followed with an increase of over 8.5 percent, while Zcash and Sky each gained more than 8 percent.
On the downside, NEAR Protocol declined 9 percent. XDC Network fell 7.35 percent, and Morpho slipped 4.14 percent.
Sentiment Shows Signs of Improvement
Investor sentiment has shown early signs of recovery. The Fear and Greed Index has climbed to 20, indicating improving confidence compared to earlier readings, though it still reflects cautious positioning in the market.
Several global developments are shaping investor outlook. Western Union has partnered with Crossmint to introduce the USDPT stablecoin on the Solana network. At the same time, Stripe owned SuiDollar, known as USDSui, has gone live to facilitate global payments. In another significant development, Kraken has become the first crypto firm to gain access to the Federal Reserve’s Core payment system.
Meanwhile, a US court has directed the Trump administration to refund $130 billion in tariffs that were invalidated. Separately, concerns related to geopolitical tensions have reportedly led to increased Bitcoin withdrawals from exchanges by users in Iran.
ETFs and Policy Signals Influence Capital Flows
Avinash Shekhar, Co Founder and CEO of Pi42, said global policy shifts and geopolitical dynamics are increasingly shaping capital allocation decisions. In this environment, Bitcoin continues to attract attention as investors diversify into digital assets.
Sustained inflows into spot Bitcoin exchange traded funds have supported liquidity and reinforced confidence in the ongoing rally. These flows suggest broader market participation across major crypto assets as adoption narratives evolve.
A Disciplined Approach Remains Key
Despite the current rebound, market experts advise caution. Vikram Subburaj, CEO of Giottus, recommends a staggered buying strategy or systematic investment plan style accumulation in fundamentally strong assets. For futures traders, he advises maintaining moderate leverage and following disciplined risk management practices.
With Bitcoin approaching key technical levels and global developments influencing sentiment, the market appears to be in a transition phase. While optimism is gradually returning, investors are continuing to balance opportunity with prudence as they await clearer directional signals.
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