Cryptocurrencies stabilized after Monday’s sharp decline, with bitcoin rebounding above $87,000 early in Tuesday’s US session.
The largest crypto climbed about 3% from overnight lows, while ether was underperforming, up just 1.4%. Altcoin majors, including BNB , , showed relative strength, gaining 3-6% overnight.
Crypto-related stocks also rebounded after Monday’s panic action. Treasury firm Bitcoin Strategy (MSTR) and brokerage firm Robinhood (HOOD) were up 3-4%, while Circle (CRCL), issuer of the $78 billion stablecoin USDC, jumped 9%.
In a rare occurrence, crypto is outperforming U.S. stocks, which are slightly lower across the board on Tuesday, with the S&P 500 down 0.5% and the Nasdaq down 0.3%.
The news was marked by delayed US jobs reports, with November data showing a worrying rise in the unemployment rate to a four-year high of 4.6%. For now, the weakness is not reflected in traders’ expectations for a Fed rate cut in January, which remain subdued with a probability of just 24%.
Dead cat bounce or something more?
Tuesday’s early action may raise hopes that bitcoin’s slide from last week’s high above $94,000 will be halted in the near term, but at least one analyst predicts BTC will hit new lows soon.
Samer Hasn, senior market analyst at brokerage
In a market note published on Tuesday, he described the current environment as “fragile”, with derivatives markets emphasizing caution. Then the last two days saw $750 million in long liquidations, including $250 million tied to Bitcoin futures, he noted.
“Traders are exiting before the data arrives or are forced to exit, reinforcing bearish momentum,” Hasn said. “Without a positive macroeconomic catalyst to reset sentiment, Bitcoin remains exposed to a deeper push, with levels below 80,000 increasingly part of the near-term discussion rather than tail risk.”
“The market now faces a short-term battle between the delay in monetary easing and the long-term attractiveness of BTC as a store of value,” said David Hernandez, crypto investment specialist at 21shares. “Immediate selling pressure could emerge as traders reassess the risk landscape, forcing BTC to defend key support zones,” he continued. “Yet underlying economic stress strengthens the bullish case for smart money accumulation: where the Fed struggles to tame inflation without collapsing the economy, Bitcoin’s limited supply becomes a critical asset.”
