Trading just below $79,000 in midday US trading on Monday, bitcoin has rebounded from its worst weekend level below $75,000.
At $78,700, BTC is up 2% over the past 24 hours and up 7% from the weekend’s weakest price, but still up more than 10% on a week-over-week basis. Ether is also up about 2% over the past 24 hours, but down 19% from a week ago.
Crypto’s weekend move “broke the key in the short term 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 selloff was triggered by another round of forced deleveraging, as over $2 billion in crypto derivatives were liquidated in a quick burst. “Liquidations in perps accelerated downward momentum, rather than discretionary spot sales,” he said.
US stocks traded higher on Monday, with the Nasdaq and S&P 500 each ahead 0.6% and the Dow Jones Industrial Average up 0.9%. While bitcoin in January closed its fourth consecutive month of losses, expert trading market analyst Ryan Detrick noted that the DJIA was higher for a ninth consecutive month in January. It’s among the Dow’s longest winning streaks ever, said Detrick, who recalled that future returns for stocks tend to be strong after such runs.
Gold and silver are having a volatile day, but are currently down modestly after their worst one-day selloff since 1980 on Friday.
The modest bounce in crypto 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 Strategi (MSTR) are down 3%.
Key US economic data as February begins
The ISM manufacturing PMI, a key gauge of US factory activity based on surveys of purchasing managers, came in warmer 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 reorder month 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 await Friday’s January US jobs report for clues on whether the Federal Reserve may cut interest rates again after pausing interest rate cuts at its January meeting last week.
