Bitcoin Reclaims $70,000 as Risk Appetite Stabilizes Ahead of Key U.S. Data

Bitcoin traded comfortably above the $70,000 mark on Monday, consolidating gains after a sharp rebound late last week from lows near $60,000, as investors reassessed risk sentiment following heavy liquidations and shifted their focus to critical U.S. economic data due later this week.

The world’s largest cryptocurrency was last up 1.5% at $70,402.5 as of 01:25 ET (06:25 GMT), extending its recovery from a 16-month low of around $60,187 reached earlier in the week.

Bitcoin’s rebound gathered momentum on Friday, when prices surged more than 12% in a single session, reclaiming the $70,000 level. The rally coincided with strong gains in technology stocks and precious metals, which helped lift risk assets more broadly across global markets.

The recovery was partly fueled by bargain hunting after the steep pullback, alongside signs of stabilization in broader financial markets. Last week’s sharp decline in Bitcoin was driven by a pronounced risk-off environment, as a selloff in U.S. technology stocks—particularly those tied to artificial intelligence—combined with forced liquidations in crypto futures markets to intensify downside pressure.

Additional volatility stemmed from continued outflows from Bitcoin spot exchange-traded funds and a widespread unwinding of leveraged positions, both of which amplified price swings during the selloff.

Risk sentiment also received support from developments in Asia. Japanese Prime Minister Sanae Takaichi secured a landslide election victory on Sunday, reinforcing expectations that her government will pursue fiscal stimulus and tax cuts. The decisive outcome pushed regional equities to record highs and contributed to a renewed appetite for risk across some global assets.

While the Japanese yen initially weakened ahead of the election, its subsequent stabilization alongside rising equities helped underpin broader market confidence.

Looking ahead, investors are closely watching a series of key U.S. economic releases later this week, including delayed employment data on Wednesday and the consumer price index report on Friday. These indicators are expected to play a crucial role in shaping expectations for the Federal Reserve’s policy path, with markets currently pricing in the possibility of interest rate cuts later in 2026 should inflation continue to cool and labor market momentum soften.

In the wider crypto market, major altcoins traded mostly sideways after bouncing off recent lows. Ethereum was little changed at $2,076.41, while XRP rose 1.1% to $1.43. Solana edged slightly lower, and both Cardano and Polygon traded flat. Among meme tokens, Dogecoin underperformed, slipping 2%.