Bitcoin rebounds near $78,000 as Asian markets steady after volatility

Bitcoin traded close to $78,000 early Tuesday as Asian markets stabilised after a period of sharp volatility across global assets, with sentiment improving following stronger-than-expected US factory activity data.

Equities across the region moved higher. Japan’s Nikkei rose 2.5 percent, reversing losses from the previous session, while South Korea’s KOSPI gained 4 percent. Futures pointed to a rebound in Hong Kong markets as investors cautiously returned to risk assets.

US equity futures were modestly higher, with S&P 500 futures up 0.3 percent ahead of a busy earnings calendar in the coming days.

In the cryptocurrency market, bitcoin was trading around $78,719, up about 2 percent on the day. Ether rose 1.8 percent to $2,334, while XRP added 0.5 percent to $1.61. Total cryptocurrency market capitalisation increased 2.6 percent to $2.72 trillion.

Despite the rebound, digital assets continued to reflect the impact of recent sell-offs. Data from CoinGlass showed that bitcoin investors liquidated $2.56 billion in recent days as cryptocurrencies declined alongside equities and precious metals during a broader risk-off move. The wipeouts affected both short and long positions, underscoring the market’s sensitivity to shifts in sentiment.

While the latest liquidations were far smaller than the record $19 billion wiped out after US President Donald Trump announced new tariffs on China, analysts said the episode highlighted how quickly leverage can unwind when risk appetite deteriorates.

Cryptocurrencies have also been weighed down by renewed concerns around the artificial intelligence trade and sharp moves in precious metals following Trump’s announcement that he would nominate Kevin Warsh as Federal Reserve chair. Investors broadly view Warsh as favouring a tighter balance sheet, a stance that could push bond yields higher and reduce the appeal of non-yielding assets.

Bitcoin has yet to recover to recent record levels after falling sharply earlier this month. It dropped to around $104,783 during October 10–11 after briefly surpassing $126,000, and was last trading near $78,396 after sliding more than 6 percent over the weekend. Analysts noted that thin weekend liquidity amplified the downward moves.

Market participants said broader macroeconomic uncertainty continues to weigh on sentiment. Disappointing earnings from major technology firms, including Microsoft, raised concerns about AI-related spending after the company reported Azure cloud revenue growth only marginally above expectations, sending its shares down sharply.

Precious metals also experienced heavy volatility. Gold and silver fell sharply last week following expectations of a shift in US monetary policy, with silver posting its worst single-session decline on record and gold recording its steepest daily fall since 1983, before rebounding on Tuesday.

By early Asian trading, selling pressure across markets had eased. Gold rose 3 percent to $4,800 per ounce, while silver climbed 5 percent to $83.34. US Treasury yields were largely steady, with the 10-year yield around 4.275 percent and the two-year near 3.57 percent.

In currency markets, the euro traded near $1.18, while the Japanese yen hovered around 155.54 per dollar, giving back part of its recent gains as speculation around coordinated policy action faded.