Bitcoin has shown a notable rebound, approaching $79,000 after a sharp decline below $75,000 over the weekend. This recovery comes as traders navigate the aftermath of significant liquidation-driven selling, balanced against optimistic macroeconomic indicators and a potential turning point for the cryptocurrency markets.
In the past 24 hours, Bitcoin and other leading cryptocurrencies have bounced back after a brutal sell-off that sent prices plummeting to multi-month lows, resulting in billions of dollars in liquidations within the derivatives sector. As per CoinDesk market data, Bitcoin was trading just under $79,000 during the Asian morning session, recovering from its weekend low near $74,000. Ether also saw gains, climbing above $2,340, while other major tokens such as Solana, BNB, XRP, and Cardano reported increases ranging from 3% to 6% in the same timeframe.
Despite this rebound, many large-cap tokens still reflect significant losses over the past week, with declines reaching up to 20%. The recent market movements followed a wave of capitulation that washed over the cryptocurrency landscape during the weekend, characterized by heavy long liquidations and diminished liquidity. According to CF Benchmarks, this sell-off could signify the conclusion of a prolonged bearish trend that commenced with the deleveraging event on October 10, 2025.
Gabe Selby, head of research at CF Benchmarks, remarked, “Bitcoin has completed the bearish sequence that began with the October 10 deleveraging event, with the recent washout retesting—and briefly undercutting—the April 2025 “Liberation Day” lows around $74,000.” He further noted that the weekend”s drastic movements triggered “massive long liquidations” in the context of broader risk-off sentiments and mixed earnings reports from major U.S. technology corporations.
Selby indicated that regulatory challenges, particularly the stalled U.S. crypto market structure legislation, continue to exert pressure on Bitcoin and the larger cryptocurrency ecosystem. Additionally, there are early signs pointing to a hawkish shift in Federal Reserve policy that may impact market sentiment. In contrast, recent declines in gold and silver appear to stem from crowded positioning following sharp rallies rather than being driven by unified macroeconomic factors.
“Now that April lows have been taken out, Bitcoin is at a clear inflection point,” Selby stated, suggesting a critical moment for market dynamics moving forward.
In the broader context, Asian markets rebounded from their steepest decline in more than two months, supported by a recovery in precious metals, which helped stabilize overall risk sentiment. The MSCI Asia Pacific Index surged by 2.4%, marking its strongest session since the “Liberation Day” rebound in April, while South Korean stocks experienced a notable increase of over 5%. Furthermore, U.S. equity futures showed upward movement after positive guidance from Palantir, despite ongoing uncertainty surrounding the leadership and policy direction of the Federal Reserve.
