Bitcoin approached $78,000 early Tuesday as Asian markets showed signs of stabilization after a period of heightened volatility across global assets. The rebound followed stronger-than-expected US factory activity data, which bolstered investor sentiment and triggered gains across regional equities. Japan’s Nikkei surged 2.5 percent, recovering from previous losses, while South Korea’s KOSPI climbed 4 percent. Futures suggested a cautious rebound in Hong Kong markets, with US S&P 500 futures also edging higher by 0.3 percent ahead of a packed earnings calendar.
In cryptocurrency markets, bitcoin traded around $78,719, up roughly 2 percent on the day. Ether increased 1.8 percent to $2,334, and XRP rose 0.5 percent to $1.61, lifting the total cryptocurrency market capitalization by 2.6 percent to $2.72 trillion. Despite the gains, digital assets remain sensitive to recent sell-offs. Data from CoinGlass indicated $2.56 billion in bitcoin liquidations in recent days, reflecting the vulnerability of leveraged positions during periods of risk-off sentiment. While these losses were far below the record $19 billion wiped out after former US President Donald Trump’s tariff announcement on China, analysts noted the episode underscored how rapidly leverage can unwind in volatile conditions.
Market watchers also highlighted lingering concerns over the impact of artificial intelligence-related trades and movements in precious metals. President Trump’s nomination of Kevin Warsh as Federal Reserve chair contributed to speculation about tighter monetary policy, which could push bond yields higher and diminish the appeal of non-yielding assets like bitcoin and gold. Earlier this month, bitcoin dropped sharply from recent highs, sliding from over $126,000 to a low near $104,783 before stabilizing near $78,396 following a weekend decline amplified by thin liquidity.
Macroeconomic uncertainty continues to influence market behavior. Disappointing earnings from major technology companies, notably Microsoft, raised questions about AI-driven spending, while precious metals experienced historic volatility. Gold and silver suffered sharp losses last week, with silver recording its worst single-session decline and gold seeing its steepest daily drop since 1983, before rebounding on Tuesday. Early Asian trading saw easing selling pressure, with gold rising 3 percent to $4,800 per ounce and silver climbing 5 percent to $83.34. US Treasury yields were largely steady, and currency markets showed minimal fluctuations.
For investors and market participants, the rebound offers cautious optimism but underlines the ongoing sensitivity of cryptocurrencies to macroeconomic shifts and risk sentiment. While bitcoin and major altcoins have regained some ground, broader uncertainty, leverage dynamics, and global economic developments will likely continue to shape market direction in the near term. The recovery may signal a stabilizing phase, but seasoned investors remain vigilant for potential volatility as markets digest upcoming earnings reports and policy signals.
