Bitcoin and other major cryptocurrencies experienced a notable rally in the last 24 hours following a severe sell-off over the weekend that resulted in prices dropping to multi-month lows. During the Asian morning session, Bitcoin traded just below $79,000, recovering from lows around $74,000. Similarly, Ethereum surged past $2,340, while Solana, BNB, XRP, and Cardano recorded gains ranging from 3% to 6%, as per market data.
Despite this recovery, many large-cap tokens remain significantly down over the past week, with losses reaching as high as 20%. This movement follows a broad capitulation in the cryptocurrency markets, characterized by extensive long liquidations and a lack of liquidity. Insights from CF Benchmarks suggest that the recent sell-off could signal the conclusion of an extended bearish phase, which began with the deleveraging event on October 10, 2025.
According to Gabe Selby, head of research at CF Benchmarks, “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 emphasized that the weekend”s price movements led to “massive long liquidations,” which were influenced by broader risk-off trends and mixed earnings reports from U.S. technology firms.
Selby also highlighted that Bitcoin“s decline is closely linked to ongoing regulatory challenges, particularly the stagnation of U.S. crypto market structure legislation, alongside initial signs of hawkish changes regarding Federal Reserve policy. In contrast, recent declines in gold and silver seemed more a result of overextended positioning rather than shared macroeconomic drivers.
“Now that April lows have been taken out, Bitcoin is at a clear inflection point,” Selby remarked. “Aggressive, high-volume bidding is needed to establish a new bullish market structure. Failure to hold above those levels keeps downside risks alive toward liquidation clusters below $70,000.”
In the broader market context, Asian stocks rebounded following their most significant sell-off in over two months, aided by a recovery in gold and silver that helped stabilize overall risk sentiment. The MSCI Asia Pacific Index surged 2.4%, marking its strongest session since the “Liberation Day” rebound in April, while South Korean equities saw an increase of over 5%. U.S. equity futures also showed signs of improvement after positive guidance from Palantir, despite ongoing uncertainties surrounding Federal Reserve leadership and policy directions.
