Trading just below $79,000 as of midday Monday in the United States, Bitcoin has rebounded from its worst level of the weekend, below $75,000.
At $78,700, BTC is up 2% in the past 24 hours and 7% from its weekend low, but still down more than 10% week-over-week. Ether is also up about 2% over the past day, but down 19% from levels a week ago.
Crypto’s weekend move “broke key short-term support and stood out for its speed and depth, even by typical weekend standards,” said Adrian Fritz, chief investment strategist at 21shares.
According to Fritz, the sell-off was triggered by another round of forced deleveraging, as more than $2 billion in crypto derivatives were liquidated in a rapid burst. “Corporate liquidations accelerated the downward momentum, rather than discretionary cash sales,” he said.
U.S. stocks rose Monday, with the Nasdaq and S&P 500 each up 0.6% and the Dow Jones Industrial Average up 0.9%. As Bitcoin closed its fourth consecutive month of losses in January, expert trading market analyst Ryan Detrick noted that the DJIA was higher for a ninth consecutive month in January. This is one of the longest winning streaks ever recorded by the Dow, said Detrick, who reiterated that future stock returns tend to be strong after such rallies.
Gold and silver are having a volatile day, but are currently down slightly after their worst one-day sell-off since 1980 on Friday.
Crypto’s modest rebound has little effect on digital asset-related stocks, which remain sharply lower across the board. Among them, Roinbhood (HOOD) is down 9%, Circle (CRCL) is down 5%, and Coinbase (COIN) and Strategy (MSTR) are down 3%.
Main US economic data at the start of February
The ISM Manufacturing PMI, a key gauge of U.S. industrial activity based on purchasing managers surveys, came in warmer than expected at 52.6 in January, compared with a forecast of 48.5. This is the first expansion in manufacturing activity in 12 months and the strongest figure since 2022.
January is typically a restocking month after the holiday season, which often results in high readings. This seasonal trend was also evident in January 2025 and January 2024.
Looking ahead, investors will wait for this Friday’s January U.S. jobs report to see if the Federal Reserve could cut rates again after suspending cuts at its January meeting last week.
