Bitcoin jumps 7% off its lows, but broader crypto markets remain weak in U.S. hours

Crypto-linked stocks extended their losses on Monday, even as bitcoin and other major tokens rebounded modestly from sharp weekend declines.

Bitcoin was trading just under $79,000 in midday U.S. hours after bouncing from weekend lows below $75,000. At around $78,700, the cryptocurrency was up about 2% over the past 24 hours and roughly 7% above its weakest level of the weekend, though it remained more than 10% lower compared with a week earlier.

Ether also gained around 2% on the day but was still down roughly 19% over the past week, highlighting the scale of recent losses across digital assets.

The weekend selloff “broke key short-term support and stood out for its speed and depth, even by typical weekend standards,” said Adrian Fritz, chief investment strategist at 21Shares. He attributed the move to a fresh wave of forced deleveraging, noting that more than $2 billion in crypto derivatives were liquidated in a short period. “Liquidations in perpetual futures accelerated the downside momentum rather than discretionary spot selling,” Fritz said.

U.S. equity markets traded higher on Monday, with the Nasdaq and S&P 500 each gaining about 0.6% and the Dow Jones Industrial Average rising 0.9%. While bitcoin posted its fourth consecutive monthly loss in January, Ryan Detrick, a traditional markets analyst, pointed out that the Dow notched a ninth straight monthly gain, placing the streak among the longest in its history. He added that equity returns have historically been strong following such extended runs.

Precious metals were volatile but modestly lower, following their sharpest one-day selloff since 1980 on Friday.

The rebound in crypto prices did little to support digital asset-related equities, which remained broadly weaker. Robinhood shares fell 9%, Circle dropped 5%, while Coinbase and Strategy were each down around 3%.

On the macro front, fresh U.S. economic data showed unexpected strength in manufacturing activity. The ISM manufacturing purchasing managers’ index rose to 52.6 in January, well above forecasts of 48.5, marking the first expansion in 12 months and the strongest reading since 2022.

January is typically a reorder-heavy month following the holiday season, a seasonal pattern that also boosted PMI readings in January 2024 and January 2025.

Looking ahead, investors are focused on Friday’s U.S. January jobs report for further clues on the Federal Reserve’s policy path, after the central bank paused rate cuts at its January meeting.