Bitcoin price today has staged a notable recovery, climbing back above the $78,000 mark after plunging to a near 10-month low over the weekend. Despite the rebound, investor sentiment remains fragile as markets digest large-scale leverage liquidations, uncertainty over U.S. monetary policy, and ongoing disputes surrounding stablecoin yield mechanisms.
The world’s largest cryptocurrency gained 2.8% to $78,558.4 early Tuesday (U.S. time), rebounding from a drop to $74,635.5 in the previous 24 hours — its weakest level since early April last year. The recovery helped Bitcoin reclaim part of its losses, yet the asset remains capped below the psychological resistance of $80,000.
Last weekend’s sharp decline was triggered by waves of stop-loss orders and margin calls across major exchanges. This cascade effect accelerated selling pressure and magnified volatility across the digital asset market.
Data from derivatives tracking platforms shows that billions of dollars in crypto positions were forcibly closed within a short period. The majority were long positions using high leverage — a sign that speculative excess had built up during last year’s rally.
Thin liquidity, particularly during weekend trading sessions, further intensified price swings. Even modest fluctuations were enough to spark massive liquidations, pushing the market into a brief panic mode.
Beyond technical factors, the macroeconomic backdrop has also unsettled traders. Markets are reassessing risks following U.S. President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve Chair. Warsh is widely viewed as a policy hawk who favors tighter financial conditions.
If the Fed maintains higher interest rates for longer, risk assets such as Bitcoin — which have benefited from abundant liquidity — could face renewed headwinds.
Another source of uncertainty is the postponement of the January U.S. employment report, a key gauge of economic health, due to a partial government shutdown. Without this critical data, investors are struggling to anticipate the Fed’s next move.
As a result, Bitcoin and other digital assets continue to react sharply to incremental headlines, highlighting the market’s fragile confidence.
Away from price action, the U.S. crypto industry is locked in a heated debate over stablecoin yields. During a meeting at the White House involving crypto executives, banking representatives, and government officials, little progress was made toward consensus.
Banks argue that interest-bearing stablecoins could accelerate deposit outflows from the traditional financial system and threaten stability. Crypto companies counter that such features are essential for innovation, adoption, and global competitiveness.
The lack of agreement underscores the long road ahead for comprehensive crypto legislation in the United States. Continued delays may deter institutional capital — a key driver of Bitcoin’s next potential bull cycle.
The rebound was not limited to Bitcoin, as major altcoins also posted gains:
Ethereum rose 4.6% to $2,325.92
XRP added 2.1% to $1.61
Solana climbed 3.5%
Cardano increased 5%
Polygon surged more than 10%
Meme tokens such as Dogecoin and $TRUMP advanced around 3.5%, suggesting speculative appetite has partially returned after the weekend shock.
Analysts say Bitcoin must decisively break above $80,000 with strong volume to confirm a sustainable uptrend. Failure to do so could open the door to another test of the $75,000 support zone.
Two factors are expected to shape the next phase:
Signals from the Federal Reserve regarding interest-rate policy under Kevin Warsh
Progress on U.S. crypto and stablecoin regulations
Any indication of monetary easing or clearer regulatory frameworks could act as a powerful catalyst for renewed momentum.
Bitcoin price today has recovered impressively from the weekend rout, yet the broader market remains vulnerable to macro and regulatory risks. Leverage liquidations, Fed policy uncertainty, and disputes over stablecoin yields continue to define the landscape.
In the near term, investors are advised to manage risk carefully, avoid excessive leverage, and monitor economic data closely. A return to previous highs may require more time — and clearer signals from both policymakers and institutional capital flows.
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