Bitcoin traded above $70,000 on Monday, stabilizing after a sharp rebound at the end of last week from levels near $60,000, as investors reassessed their appetite for risk following large sell-offs and turned their attention to key US economic data due later this week.
The world’s largest cryptocurrency rose 1.5% to $70,402.5 by 10:25 a.m. Saudi time, moving further away from its 16-month low of around $60,187.0 reached earlier in the week.
On Friday, the cryptocurrency surged back above $70,000, climbing more than 12% in a single session as technology and precious metals stocks rose, helping to lift risk assets in general.
The recovery was driven in part by bargain hunting after the deep sell-off, as well as by broader stabilization in global markets.
Last week's sharp decline in Bitcoin was linked to a broader risk-averse mood in global markets. The sell-off in US technology stocks—particularly those related to artificial intelligence—and forced sell-offs in cryptocurrency futures markets exacerbated the downward pressure.
Investors also witnessed extended redemptions in Bitcoin exchange-traded funds and a pullback from leveraged positions as key drivers of volatility.
The Japanese elections add to the shift in risk appetite.
Japanese Prime Minister Sanae Takaichi secured a landslide victory in Sunday's election, bolstering her mandate to pursue fiscal stimulus and tax cuts. This decisive win boosted regional stocks and was linked to a renewed appetite for risk in some global assets.
While the yen initially weakened in anticipation of the outcome of the Japanese elections, its subsequent stabilization, along with gains in stocks, helped to support broader risk sentiment.
Investors are now looking ahead to a slew of key U.S. economic data due later this week, including delayed employment figures on Wednesday and the Consumer Price Index report on Friday.
This data could affect the Federal Reserve's interest rate outlook, with markets anticipating a possible rate cut later in 2026 if inflation slows and labor market momentum weakens.
Cryptocurrency prices today: Altcoins are quiet after rebounding from lows
Most alternative currencies traded within narrow ranges on Monday.
Ethereum, the world's second-largest cryptocurrency, traded unchanged at $2,076.41.
XRP, the world's third-largest cryptocurrency, rose 1.1% to $1.43.
Solana fell slightly, while Cardano and Polygon traded unchanged.
Among the meme currencies, Dogecoin fell by 2%.
