Bitcoin recovers to above $82,000 as crypto market corrects risk-off sentiment

Bitcoin, ether and other major cryptocurrencies partially recovered their losses during the recent selloff, driven by multiple pieces of bullish crypto and macroeconomic news.

Bitcoin was trading at $82,598, rising around 4.3% in the past 24 hours according to The Block's bitcoin price page. Ether added 2.2% to trade at $1,897.

Major altcoins showed stronger price gains, with XRP jumping 8.3% to change hands at $2.2, while Solana climbed 3.8% to $124.19. Cardano gained 5.6% to $0.73, and Dogecoin added 6.9% to $0.16. The entire crypto market rose by 3.8% in the past day, The Block's data dashboard showed.

However, Presto Research analyst Min Jung said Tuesday's gains represent only a minor recovery after the market's recent sharp decline.

"We are seeing a market recovery, but it appears to be more of a small bounce following yesterday’s crash, with no dominant headlines driving the move," said Jung. "Additionally, the equity market ended the day slightly negative rather than experiencing another significant sell-off."

Bitcoin slid below $77,000 yesterday, alongside significant dips seen across both the crypto market and the U.S. stock market, where the Dow Jones and the S&P 500 posted their worst day of the year. 

The intense sell-off came as U.S. President Donald Trump's drastic tariff plans sparked concerns among investors, further worsened by Trump's comment that he would not rule out a recession during this "period of transition."

"Although bitcoin and other cryptocurrencies found some relief, the rally only corrects some overly cautious risk-off sentiment," said LVRG Research Director Nick Ruck.

The price recovery was partly fueled by news of Trump's reversal of the 50% tariff on Canadian steel and aluminum, which had been scheduled to take effect on Wednesday.

Earlier on Tuesday, Ukraine agreed to Trump's 30-day ceasefire proposal, with the U.S. leader now looking to talk to Russian President Vladimir Putin to end the conflict between the two countries.

Pro-crypto U.S. Senator Cynthia Lummis also reintroduced the bill to create a strategic bitcoin reserve on Tuesday, just days after Trump signed an executive order to establish a national bitcoin reserve.

Investors now look to the Wednesday release of the U.S. consumer price index, a key inflation indicator. "The CPI release today will be a major event, as the entire market is focused on the inflation trajectory and how the Fed will respond," Jung said.

The next Federal Open Market Committee meeting is scheduled for March 19, where they will assess the state of the U.S. economy and set key interest rates. The CME Group's FedWatch Tool currently indicates a 96% chance that the Fed will maintain the current interest rate of 4.25% to 4.50%.

"Sustained growth hinges on policy clarity and technical breakouts, with tariffs not yet commonly placed to disrupt momentum, though volatility and macroeconomic risks still warrant caution," said Vincent Liu, chief investment officer at Kronos Research.