Bitcoin traded above the $70,000 level on Monday, holding steady after a sharp rebound late last week from lows near $60,000, as investors reassessed risk appetite following a wave of heavy liquidations and shifted their focus to key US economic data due later in the week.

The world’s largest cryptocurrency was up 1.5% at $70,402.5 as of 01:25 ET (06:25 GMT), moving further away from its 16-month low near $60,187.0 recorded earlier in the week.

The token had jumped back above $70,000 on Friday, gaining more than 12% in a single session, alongside advances in technology stocks and precious metals, which helped support higher-risk assets more broadly.

The recovery was partly driven by dip-buying after the steep decline, in addition to broader stabilization across global markets.

Last week’s sharp drop in Bitcoin was linked to widespread risk aversion across global markets, as a selloff in US technology shares — particularly AI-related stocks — combined with forced liquidations in crypto futures markets to intensify downside pressure.

Investors also recorded continued outflows from spot Bitcoin exchange-traded funds, along with a reduction in leveraged positions, which were seen as key drivers behind the volatility.

Japan election boosts sentiment

Japanese Prime Minister Sanae Takaichi secured a landslide election victory on Sunday, strengthening her mandate to continue fiscal stimulus and tax-cut policies. The decisive result supported regional equity markets and was associated with a partial return of risk appetite across global assets.

While the yen initially weakened ahead of the election outcome, its later stabilization alongside equity gains helped reinforce improved broader market sentiment.

Investors are now awaiting a batch of key US economic releases later this week, including delayed employment data on Wednesday and the Consumer Price Index report on Friday.

Those figures could influence Federal Reserve rate expectations, as markets price in potential rate cuts later in 2026 if inflation slows and labor market momentum weakens.

Altcoins move in tight ranges

Most altcoins traded in narrow ranges on Monday.

Ethereum, the world’s second-largest cryptocurrency, held steady at $2,076.41, while XRP, the third-largest token, rose 1.1% to $1.43.

Oil prices fell by more than 1% on Monday as fears of a Middle East conflict eased after the United States and Iran pledged to continue indirect talks over Tehran’s nuclear program, calming concerns about possible supply disruptions.

Brent crude futures declined by $0.84, or 1.2%, to $67.21 per barrel as of 07:47 GMT, while US West Texas Intermediate crude fell $0.82, or 1.3%, to $62.73.

Tony Sycamore, market analyst at IG, said that with more talks ahead, immediate concerns about supply disruptions in the Middle East have largely faded.

Iran and the United States agreed to continue negotiations after what both sides described as positive discussions held on Friday in Oman, easing worries that a breakdown in talks could push the region toward military confrontation, especially as the US has deployed additional forces to the area.

Roughly one-fifth of global oil consumption passes through the Strait of Hormuz between Oman and Iran.

Both benchmark crudes dropped more than 2% last week as tensions cooled, marking their first weekly decline in seven weeks.

However, Iran’s foreign minister said the country would target US bases in the Middle East if attacked by American forces, underscoring that the risk of conflict has not fully disappeared.

Priyanka Sachdeva, senior market analyst at Phillip Nova, said volatility remains elevated amid conflicting rhetoric, and any negative headlines could quickly rebuild risk premiums in oil prices this week.

Investors are also weighing Western efforts to curb Russia’s oil revenue that supports its war in Ukraine. The European Commission on Friday proposed a broad ban on services that support Russia’s seaborne crude exports.

Sources in refining and trading said Indian refiners — previously the largest buyers of Russian seaborne oil — are avoiding purchases for April delivery and may stay away longer, which could help New Delhi secure a trade agreement with Washington.

Sachdeva added that oil markets will remain sensitive to how far this shift away from Russian crude expands, whether India’s reduced buying continues beyond April, and how quickly alternative supplies reach the market.

The British pound fell against the euro and weakened versus the dollar on Monday, as traders reacted to the crisis facing UK Prime Minister Sir Keir Starmer, alongside the impact of expectations for future interest rate cuts on the currency.

Morgan McSweeney, Starmer’s chief of staff, resigned on Sunday, saying he took responsibility for advising the prime minister to appoint Peter Mandelson as ambassador to the United States despite his known links to Jeffrey Epstein.

Even so, Starmer remains under growing pressure as the fallout from the Epstein case continues and difficult local elections approach.

The euro rose 0.49% in the latest trading against the pound to 87.22 pence, close to a two-week high, although the European currency remains broadly stable against sterling since the start of the year.

Against the dollar, the pound slipped slightly to $1.3607 after falling about 0.2% earlier in the session.

Politics in focus for UK assets

UK government bonds slightly underperformed their European peers on Monday, with markets focused on Starmer’s position, though moves remained limited.

Many bond investors fear that a new Labour prime minister could shift toward more left-leaning policies and higher spending, while currency markets typically dislike political instability.

The government now faces the possibility of publishing near-complete private correspondence between officials regarding Mandelson’s appointment, in what could prove politically embarrassing.

A by-election in Manchester later this month, along with local elections in May, could also deliver another blow to Starmer’s leadership.

Chris Turner, head of global markets at ING, said pressure is expected to continue on both sterling and UK government bonds amid market speculation about possible changes in the occupants of 10 and 11 Downing Street, referring to the prime minister and finance minister. He added that, alongside the dovish tone seen at last week’s Bank of England meeting, the pound is under pressure.

Diverging rate-cut bets

Sterling was also affected by the Bank of England’s decision last week to keep interest rates unchanged, with a closer-than-expected vote split that pushed traders to increase bets on further cuts this year.

By contrast, the European Central Bank is expected to keep rates steady for the foreseeable future, reducing the pound’s appeal versus the euro amid expectations of relatively lower yields.

Neil Jones, managing director of FX sales and trading at TJM Europe, said the pound appears set to continue its broader weak trend as political uncertainty rises.

Three-month risk reversals, which measure the cost difference between euro call options versus pound calls, rose to 67 basis points, the highest level since late November, up from 22 basis points on Thursday. A higher reading signals stronger bullish positioning in the euro versus the pound.

The euro also rose about 0.4% against the dollar on Monday. Some analysts noted that a Bloomberg report saying China advised banks to limit their holdings of US Treasuries added pressure on the dollar.

Silver prices rose by about 6% in the European market on Monday, extending their recovery for a second consecutive session from a seven-week low, and trading once again above the $80 per ounce level, supported by active buying from lower levels.

The rally is also supported by the current decline in the US dollar in the foreign exchange market, ahead of a series of important US economic releases that will provide strong evidence about the Federal Reserve’s interest rate path.

Price Overview

Silver prices today rose by 6.0% to $82.48 per ounce, from an opening level of $77.87, with a session low recorded at $77.87.

At Friday’s settlement, silver gained 9.75%, marking its third advance in the past four sessions, after hitting a seven-week low earlier in trading at $64.08 per ounce.

Over the past week, silver fell by 8.65%, posting its second consecutive weekly loss, amid ongoing correction and profit-taking from record levels, and concerns related to higher margin requirements on gold and silver futures contracts.

US Dollar

The US Dollar Index fell 0.4% on Monday, extending losses for a second straight session and reflecting continued weakness in the US currency against a basket of major and secondary currencies.

The decline is driven by negative pressures led by tighter scrutiny of capital spending by major technology companies, rising concerns about AI-related disruption in the software sector, and liquidity and margin pressures linked to gold and silver markets.

US Interest Rates

San Francisco Federal Reserve President Mary Daly said on Friday that one or two additional rate cuts may be needed to address weakness in the labor market.

According to the CME FedWatch tool, the probability of keeping US interest rates unchanged at the March meeting stands at 85%, while the probability of a 25 basis point rate cut is priced at 15%.

To reprice these expectations, investors are closely monitoring upcoming US economic data, along with further comments from Federal Reserve officials.

Starting Tuesday, several key US data releases are due, including retail sales, the delayed jobs report on Wednesday, weekly jobless claims on Thursday, and core inflation data for January on Friday.