Bitcoin prices rose today, recovering from their lowest levels in nearly ten months, but remained under pressure below the $80,000 mark following a sharp wave of liquidations over the weekend, alongside ongoing uncertainty surrounding US monetary policy.
The world’s largest cryptocurrency gained around 2.8% to trade near $78,558, after plunging over the past 24 hours to around $74,635 its lowest level since early April as accelerated selling was triggered by stop-loss orders and margin calls.
The sharp weekend decline was driven by widespread liquidations of leveraged positions, highlighting the extent of speculative activity that had built up during last year’s strong rally. Data from derivatives tracking firms showed that cryptocurrency bets worth several billion dollars were liquidated within a short period, with long positions accounting for the majority of forced closures. Thin liquidity further amplified price swings, as relatively modest moves led to large scale liquidations.
Bitcoin’s performance was also weighed down by macroeconomic uncertainty, as investors assessed the implications of Kevin Warsh’s nomination as Chairman of the US Federal Reserve, which reignited debate over the future path of interest rates. Warsh is widely viewed as favoring a more hawkish monetary stance, raising concerns that tight financial conditions could persist for longer.
In the same context, the release of the US January jobs report closely watched by markets was delayed due to a partial government shutdown, according to the Bureau of Labor Statistics, adding to investor caution and uncertainty.
On the regulatory front, tensions remain between the cryptocurrency sector and major US banks over how yields on stablecoins should be regulated, following a White House meeting that failed to deliver tangible progress. Media reports indicated that discussions involving government officials, crypto executives, and banking representatives did not reach consensus on whether stablecoin issuers should be allowed to offer yield like returns. Banks warned such a move could accelerate deposit outflows and threaten financial stability, while crypto firms argued it is essential to support growth and competitiveness.
Alongside Bitcoin’s modest rebound, most altcoins also saw slight recoveries. Ethereum rose by about 4.6%, Ripple gained 2.1%, Solana advanced 3.5%, and Cardano climbed 5%, while Polygon posted gains exceeding 10%. Some meme themed cryptocurrencies, such as Dogecoin and the TRUMP token, also recorded gains of around 3.5%.
This limited improvement in the cryptocurrency market comes as volatility remains elevated, with investors awaiting fresh signals related to US monetary policy and potential regulatory developments for digital assets.
Stay informed about global markets through our previous analyses. and Now, you can also benefit from LDN company services via the LDN Global Markets trading platform.
