Bitcoin rebounded about 7% from weekend lows but remained below $80,000 in midday US trading, underscoring continued pressure across crypto markets.
The recovery followed a sharp weekend sell-off that pushed bitcoin below $75,000, leaving the token still down more than 10% over the past week.
“Liquidations in perps accelerated the downside momentum, rather than discretionary spot selling,”
Said 21Shares chief investment strategist, Adrian Fritz.
Fritz said the sell-off was driven by forced deleveraging, with more than $2 billion in crypto derivatives liquidated in a rapid burst.
The modest crypto bounce did little to support digital asset-linked stocks, with Robinhood, Coinbase and Strategy all posting sizable losses on Monday.
By contrast, US equities outperformed, with the S&P 500, Nasdaq and Dow Jones Industrial Average all trading higher as investors rotated toward traditional assets.
Investors are now awaiting key US economic data, including Friday’s January jobs report, for signals on whether the Federal Reserve may resume interest rate cuts.