Bitcoin traded above $70,000 on Monday, steadying after a sharp recovery late last week from lows close to $60,000 as market participants re-evaluated risk appetite following significant liquidations and awaited a set of important U.S. economic releases due later in the week.
By 01:25 ET (06:25 GMT) Bitcoin was last quoted 1.5% higher at $70,402.5, moving further away from a 16-month low near $60,187.0 recorded earlier in the week. The token’s bounce back over the $70,000 mark on Friday saw a one-session rise of more than 12% as gains in technology shares and precious metals coincided with a broader rally in risk assets.
The upswing reflected a mix of bargain hunting after the steep pullback and a more general stabilization across global markets. Last week’s selloff had been driven by a pronounced risk-off tone: weakness in U.S. technology stocks - particularly those connected to artificial intelligence - combined with forced liquidations in crypto futures markets to intensify downward pressure on bitcoin.
Market participants also pointed to extended redemptions from Bitcoin spot exchange-traded funds and a withdrawal from leveraged positions as significant contributors to volatility during the decline.
Japan election and regional markets
Political developments in Japan added to the recent shift in risk sentiment. Japanese Prime Minister Sanae Takaichi secured a landslide election victory on Sunday, strengthening her mandate to pursue fiscal stimulus and tax cuts. The decisive result supported equity markets in the region and was linked with renewed appetite for risk in certain global assets.
Currency moves factored into the market response as well: the yen initially weakened ahead of the poll outcome but later stabilized, and that stabilization, together with equity gains, helped underpin broader risk sentiment.
Eyes on U.S. data and the Fed outlook
Investors are turning their attention to a slate of U.S. economic reports later in the week, including delayed employment figures scheduled for Wednesday and the consumer price index due on Friday. These data points are viewed as potentially influential for the Federal Reserve’s interest rate outlook, with market pricing incorporating the possibility of rate cuts later in 2026 if inflation subsides and labor market momentum weakens.
Altcoins remain subdued
Most alternative cryptocurrencies traded in narrow ranges on Monday. Ethereum was effectively flat at $2,076.41, while XRP rose 1.1% to $1.43. Solana edged slightly lower, and Cardano and Polygon held flat. Among meme tokens, Dogecoin fell 2%.
The current price action across major digital assets reflects a market still digesting last week’s volatility and awaiting the incoming U.S. economic releases that could sway broader risk sentiment and funding conditions.
Disclosure: This article is for informational purposes only and does not constitute investment advice.