A 7% Bitcoin rebound fails to lift crypto, which remains pressured in U.S. markets

Crypto-related equities remained under pressure on Monday, even as bitcoin and other major tokens recovered modestly from sharp weekend losses.

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

Ether also gained about 2% on the day, though it was still down nearly 19% from a week earlier, highlighting the extent of the recent selloff across digital assets.

The weekend decline “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 said the move was driven by another round of forced deleveraging, with more than $2 billion in crypto derivatives liquidated in a short burst. “Liquidations in perpetual futures accelerated the downside momentum rather than discretionary spot selling,” Fritz said.

U.S. equities traded higher on Monday, underscoring a widening divergence between traditional markets and crypto. The Nasdaq and S&P 500 were each up about 0.6%, while the Dow Jones Industrial Average gained 0.9%. While bitcoin logged its fourth straight monthly decline in January, market analyst Ryan Detrick noted the Dow rose for a ninth consecutive month—one of its longest winning streaks on record. Historically, he said, stocks have tended to perform well following such runs.

Gold and silver were volatile but modestly lower after suffering their worst one-day selloff since 1980 on Friday.

The rebound in crypto prices did little to support crypto-linked stocks, which remained broadly weaker. Robinhood fell 9%, Circle declined 5%, while Coinbase and Strategy were each down around 3%.

On the macro front, U.S. data released at the start of February showed unexpected strength in manufacturing. The ISM manufacturing PMI rose to 52.6 in January, well above expectations of 48.5, marking the first expansion in factory activity in 12 months and the strongest reading since 2022.

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

Investors are now looking ahead to Friday’s U.S. January jobs report for further clues on the Federal Reserve’s next policy move, after the central bank paused rate cuts at its January meeting.