Bitcoin rebounded from near 10-month lows on Tuesday but remained under pressure below the $80,000 mark, after heavy liquidations over the weekend and uncertainty around U.S. monetary policy weighed.
The world’s largest cryptocurrency last traded 2.8% higher at $78,558.4 by 01:42 ET (06:42 GMT).
Bitcoin had fallen to as low as $74,635.5 in the prior 24-hours, its lowest since early April, as a cascade of stop-loss orders and margin calls accelerated the sell-off.
Access premium crypto market insights, analysts' price forecasts with InvestingPro Bitcoin pressured by heavy liquidations, Trump's Fed nomination The sharp weekend decline was driven by widespread liquidations of leveraged positions, highlighting the extent of speculative positioning that had built up during last year’s rally.
Data from derivatives tracking firms showed that several billion dollars worth of crypto bets were wiped out over a short period, with long positions accounting for the bulk of forced closures.
Reports said that thin liquidity exacerbated price swings, allowing relatively small moves to trigger large-scale liquidations.
Sentiment has also been weighed down by macroeconomic uncertainty. Investors are assessing the implications of Kevin Warsh’s nomination as the next chair of the U.S. Federal Reserve, a move that has prompted reassessment of the future path of interest rates.
Warsh is widely viewed as favouring a more hawkish policy stance, raising concerns that financial conditions might remain tighter for longer.
Meanwhile, the release of January’s closely watched U.S. jobs report, originally due on Friday, has been delayed due to a partial government shutdown, according to the Bureau of Labor Statistics.
No deal on stablecoin yields at White House crypto meeting The cryptocurrency industry and major U.S. banks remain far apart on how to regulate yields on stablecoins after a White House meeting, highlighting continued obstacles to advancing long-stalled crypto legislation, media reports showed.
Executives from crypto firms, banking representatives, and government officials met in Washington to discuss market-structure rules, but made little progress on whether stablecoin issuers should be allowed to offer yield-like returns, reports said.
Banks have argued that yield-bearing stablecoins could accelerate deposit outflows and pose financial stability risks, while crypto firms say such features are critical for growth and competitiveness.
Crypto price today: altcoins rebound; Polygon jumps 10% Most altcoins also rebounded slightly on Tuesday.
World no.2 crypto Ethereum rose 4.6% to $2,325.92.
World no. 3 crypto XRP gained 2.1% to $1.61.
Solana advanced 3.5%, while Cardano jumped 5% and Polygon surged over 10%.
Among meme tokens, both Dogecoin and $TRUMP climbed 3.5%.
