Asian markets open: Bitcoin stabilizes near $78,000 as calm returns to Asian markets

Bitcoin traded near $78,000 early Tuesday as Asian markets regained balance after a turbulent period of volatility in the precious metal, with traders reassured by a sharp increase in U.S. factory activity overnight.

Stocks rose across the region. Japan’s Nikkei jumped 2.5% to recoup Monday’s losses, South Korea’s Kospi rose 4% and futures pointed to a rebound in Hong Kong as investors returned to risk after last week’s volatility.

U.S. markets looked steadier at the open, with S&P 500 futures up 0.3% as traders prepared for a series of busy earnings reports over the coming sessions.

An overview of the markets

• Bitcoin: $78,719, up 2%
• Ethereum: $2,334, up 1.8%
• XRP: $1.61, up 0.5%
• Total cryptocurrency market capitalization: $2.72 trillion, up 2.6%

Liquidations Piling Up as Mood Turns Against Leverage

However, cryptocurrencies are still feeling the effects of the recent sell-off. Bitcoin investors have recorded $2.56 billion in liquidations on their Bitcoin positions in recent days, according to CoinGlass data, after the digital asset fell alongside stocks and metals amid broader risk aversion.

Although liquidations of long and short Bitcoin positions remained well below the record $19 billion in cryptocurrency liquidations that followed President Donald Trump’s announcement of tariffs on China, the latest wave has highlighted how quickly leverage can collapse when the mood changes.

Traders also continued to closely monitor the metals after wild swings linked to Trump’s decision to appoint Kevin Warsh as head of the Federal Reserve.

Investors view Warsh as more inclined to shrink the Fed’s balance sheet, a stance that could push up bond yields and reduce the appeal of non-performing assets.

Tuesday morning in Asia, the selling pressure had eased and prices were on the rise again. Gold rose 3% to $4,800 an ounce, about 9% above Monday’s lows, while silver rose 5% to $83.34.

The latest measures follow the forced liquidation of crowded positions spanning markets, with traders selling other holdings to cover losses elsewhere. “The broader flow picture indicates a clear rotation away from risk, as investors reallocate funds toward cash and gold amid growing economic and political uncertainty,” Bitfinex analysts said.

Earnings optimism balances interest rate and yield concerns

Macroeconomic data helped set the tone. U.S. industrial activity rose for the first time in a year in January, PMI figures showed, pushing yields higher without much change in expectations for further interest rate cuts.

Treasury markets remained stable in Asia, with benchmark 10-year bond yields around 4.275% in Tokyo and two-year bond yields near 3.57%, after short-term yields rose in New York.

Wall Street closed higher on Monday, boosted by chipmakers and other artificial intelligence-related companies, while shares of Alphabet hit a record high ahead of its results later this week. Disney shares fell 7.4% after warning of a decline in international visitors to its U.S. theme parks and weak performance at its TV and movie division, with AMD and Super Micro Computer set to report results after the market close on Tuesday.

In Australia, markets awaited the central bank’s decision on Tuesday. A strong labor market and higher-than-expected fourth-quarter inflation data led traders to anticipate a 25 basis point rate hike, Australian stocks rose 1.3% early and the Australian dollar settled at $0.6958 after its biggest monthly rise in three years in January.

Currencies also stabilized after a sharp swing in the dollar last week. The euro traded around $1.18, while the yen remained near 155.54 yen to the dollar, recouping about half of the gains made during a wave of speculation about possible joint intervention by the United States and Japan to support the Japanese currency.

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