Bitcoin is trading just below $79,000 at midday Monday in the US. has recovered from its weekend worst level below $75,000.
At $78,700, BTC is up 2% in the past 24 hours and 7% from its weakest price over the weekend, but is still down more than 10% week over week. Ether It is also up about 2% over the past day, but down 19% from levels from 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 liquidation was triggered by another round of forced deleveraging, as more than $2 billion in crypto derivatives were quickly liquidated. “Criminal liquidations accelerated the bearish momentum, rather than discretionary spot sales,” he said.
US stocks traded higher on Monday, with the Nasdaq and S&P 500 each gaining 0.6% and the Dow Jones Industrial Average rising 0.9%. While Bitcoin closed its fourth consecutive month of losses in January, trading market expert Ryan Detrick noted that the DJIA rose for the ninth consecutive month in January. That’s one of the longest winning streaks in Dow history, Detrick said, noting that future stock returns tend to be strong after such streaks.
Gold and silver are having a volatile day, but are currently modestly lower after their worst one-day sell-off since 1980 on Friday.
Cryptocurrencies’ modest rebound is having little effect on digital asset-related stocks, which remain 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%.
Key US economic data for early February
The ISM Manufacturing PMI, a key gauge of U.S. factory activity based on surveys of purchasing managers, was higher than expected at 52.6 in January, compared with a forecast of 48.5. This marks the first expansion in manufacturing activity in 12 months and the strongest reading since 2022.
January is typically a month for ordering after the holiday period, which often results in elevated readings. This seasonal pattern was also evident in January 2025 and January 2024.
Looking ahead, investors will be waiting for this Friday’s January US jobs report for clues on whether the Federal Reserve could cut rates again after suspending cuts at its January meeting last week.
