Bitcoin was trading just below $79,000 during U.S. midday trading on Monday It has rebounded from weekend lows below $75,000.
BTC price is at $78,700, up 2% in the past 24 hours, up 7% from the weekend’s weakest price, but still down more than 10% on a weekly basis. ether It was also up about 2% in the past day, but is down 19% from levels a week ago.
Adrian Fritz, chief investment strategist at 21shares, said the cryptocurrency’s weekend move “broke key short-term support and stood out for its speed and depth even by typical weekend standards.”
Fritz said the sell-off was triggered by another round of forced deleveraging, with more than $2 billion in crypto derivatives being quickly liquidated. “Liquidations of perpetuators accelerated the downward momentum rather than haphazard spot selling,” he said.
U.S. stocks were higher on Monday, with the Nasdaq and S&P 500 rising 0.6% each and the Dow Jones Industrial Average rising 0.9%. Although Bitcoin ended its fourth consecutive month of declines in January, tradfi market expert analyst Ryan Detrick noted that the Dow Jones Industrial Average was higher for the ninth consecutive month in January. Detrick said this was one of the longest winning streaks the Dow has ever seen, and he cautioned that future returns from stocks tend to be strong following such gains.
Gold and silver had a volatile day but are now trading slightly lower after suffering their worst one-day selloff since 1980 on Friday.
The modest rally in cryptocurrencies had little impact on digital asset-related stocks, which still fell sharply across the board. Among them, Roinbhood (HOOD) fell 9%, Circle (CRCL) fell 5%, dCoinbase (COIN) and Strategy (MSTR) fell 3%.