Bitcoin traded near $78,000 early Tuesday as Asian markets regained their footing after a bruising stretch of volatility in precious metals, with traders taking some comfort from a sharp pickup in US factory activity overnight.
Equities across the region pushed higher. Japan’s Nikkei jumped 2.5% to claw back Monday’s losses, South Korea’s KOSPI rose 4%, and futures pointed to a rebound in Hong Kong, as investors stepped back into risk after last week’s whipsaw.
US markets also looked steadier at the open, with S&P 500 futures up 0.3% as traders lined up for a busy run of earnings in the next few sessions.
Market snapshot
- Bitcoin: $78,719, up 2%
- Ether: $2,334, up 1.8%
- XRP: $1.61, up 0.5%
- Total crypto market cap: $2.72 trillion, up 2.6%
Liquidations Mount As Sentiment Turns Against Leverage
Crypto, though, still carried the scars of the recent sell-off. Bitcoin investors liquidated $2.56B in recent days, CoinGlass data showed, after digital assets slid alongside equities and metals in a broader risk retreat.
The wipeouts in both short and long Bitcoin positions remained well below the record $19B in crypto liquidations that followed President Donald Trump’s tariff announcement on China, even so the latest wave underscored how quickly leverage can unravel when sentiment turns.
Traders also kept a close eye on metals after violent swings tied to Trump’s decision to nominate Kevin Warsh as his pick to lead the Federal Reserve.
Investors see Warsh as more inclined to shrink the Fed’s balance sheet, a stance that can push bond yields higher and sap the appeal of assets that offer no yield.
By Tuesday morning in Asia, the selling pressure eased and prices snapped back. Gold rose 3% to $4,800 an ounce, nearly 9% above Monday’s lows, while silver climbed 5% to $83.34.
The latest moves followed a forced unwind in crowded positions that spilled across markets, as traders sold other holdings to meet losses elsewhere. “The broader flow picture suggests a clear risk-off rotation, with investors reallocating toward cash and gold amid rising macroeconomic and political uncertainty,” Bitfinex analysts said.
Earnings Optimism Offsets Rate And Yield Concerns
Macro data helped set the tone. US factory activity expanded for the first time in a year in January, PMI figures showed, nudging yields higher without materially shifting expectations for rate cuts later on.
Treasury markets held steady in Asia, with benchmark 10-year yields around 4.275% in Tokyo and two-year yields near 3.57%, after the front end ticked higher in New York.
Wall Street closed higher on Monday, lifted by chipmakers and other AI-linked names, while Alphabet shares hit a record high ahead of results later this week. Disney sank 7.4% after warning about a drop in international visitors to its US theme parks and weaker performance in its TV and film division, with AMD and Super Micro Computer due to report after the bell on Tuesday.
In Australia, markets looked ahead to a central bank decision later Tuesday. A resilient jobs market and a hotter-than-expected fourth-quarter inflation print left traders pricing in a 25 basis point rate hike, Australian shares rose 1.3% early, and the Australian dollar held firm at $0.6958 after its strongest monthly rise in three years in January.
Currencies also settled after last week’s sharp dollar swing. The euro traded around $1.18, while the yen hovered near 155.54 per dollar, giving back about half the gains it made during a burst of speculation about possible joint US-Japan action to support the Japanese currency.
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