Bitcoin (COIN:BTCUSD) remained above the $70,000 level on Monday, holding onto gains after a strong rebound late last week from lows near $60,000. The stabilisation comes as investors reassess risk following heavy liquidation-driven volatility and turn their attention to a busy slate of U.S. economic data later in the week.
The world’s largest cryptocurrency was trading about 1.5% higher at $70,402.5 by 01:25 ET (06:25 GMT), continuing to distance itself from a roughly 16-month low around $60,187 reached earlier in the week.
After plunging sharply, Bitcoin surged back above $70,000 on Friday, posting a single-day gain of more than 12%. The recovery coincided with rallies in U.S. technology stocks and precious metals, which helped lift broader risk assets. Opportunistic buying after the deep sell-off and a general calming of global markets also supported the move.
The prior week’s decline reflected a wider bout of risk aversion. Weakness in U.S. tech shares—particularly those linked to artificial intelligence—combined with forced unwinds in crypto derivatives markets to amplify selling pressure. Continued outflows from spot Bitcoin exchange-traded funds and a reduction in leveraged positions added to the turbulence.
Japan election supports risk tone
Risk sentiment improved further after Japanese Prime Minister Sanae Takaichi secured a decisive election victory on Sunday, strengthening her mandate to pursue fiscal stimulus and tax relief. The result lifted regional equity markets and was associated with a renewed willingness to take risk across some global asset classes.
Although the yen initially softened ahead of the vote, its subsequent stabilisation alongside rising equity markets helped reinforce the shift in sentiment.
Looking ahead, investors are focused on several key U.S. data releases due later this week, including delayed labour market figures on Wednesday and the consumer price index on Friday. These reports could shape expectations for Federal Reserve policy, with markets weighing the possibility of rate cuts later in 2026 if inflation cools and labour market momentum eases.
Altcoins trade sideways
Most major alternative cryptocurrencies traded in narrow ranges on Monday following their recent rebound.
Ethereum was little changed at $2,076.41, while XRP rose 1.1% to $1.43. Solana edged slightly lower, and both Cardano and Polygon were broadly flat. Among meme-related tokens, Dogecoin slipped about 2%.
Leave a Reply