Crypto markets are stabilizing in early U.S. hours Monday, rebounding from weekend lows as Wall Street shrugs off what had been steep overnight losses in equity futures.
At one point, U.S. stock index futures were signaling declines of more than 2%. Yet roughly an hour into the cash session, major benchmarks are barely in the red. The Nasdaq is down just 0.1%, while the S&P 500 and Dow Jones Industrial Average are posting only modest losses, marking a sharp turnaround from earlier fears.
Safe-haven assets continue to attract demand. Gold is trading 2% higher, crude oil remains up about 7%, and the U.S. dollar index has climbed 1%, delivering one of its strongest performances in weeks.
Bitcoin (BTC) has advanced to $68,600, up 2.3% over the past 24 hours. Ether (ETH) is ahead 1.4%, with Solana (SOL) and XRP (XRP) registering similar gains. The bounce follows a volatile weekend dominated by geopolitical headlines.
Crypto-linked stocks are outperforming broader markets. Circle (CRCL) has surged 12%, Strategy (MSTR) is up 6%, and Galaxy Digital (GLXY) has added 4.7%, signaling renewed appetite for digital asset exposure through equities.
Economic data released alongside the market moves point to strengthening U.S. activity. The ISM manufacturing PMI printed at 52.4 for February, marking another month of expansion and the first back-to-back readings above 50 since late 2022. This builds on Friday’s Chicago Business Barometer reading of 57.7, which exceeded expectations and reflected the fastest pace of activity growth since May 2022.
Amid Middle East tensions, firmer oil prices, and last week’s hotter-than-expected producer price data, expectations for a March rate cut have largely disappeared ahead of the Federal Reserve’s March 18 meeting.
Typically, fading prospects for monetary easing would act as a headwind for crypto. However, markets may have already adjusted to a higher-for-longer rate environment, helping digital assets and related stocks show resilience despite the evolving macro landscape.
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