February 2, 2026
Finance

Cryptocurrency Markets Hold Steady Following Weekend Volatility

Bitcoin and Major Altcoins Stabilize as ISM PMI Data Eases Economic Concerns

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Summary

Following a recent pullback over the weekend, Bitcoin and several prominent cryptocurrencies have entered a period of sideways trading. This stabilization coincides with the U.S. ISM Purchasing Managers Index (PMI) reaching its highest point since 2022, which has tempered fears of an impending recession. Despite notable liquidations among traders, the market shows resilience, with indicators suggesting cryptocurrency cycles and support levels remain important to monitor.

Key Points

Bitcoin and other major cryptocurrencies have stabilized, trading sideways after a weekend decline.
The U.S. ISM PMI hit its highest point since 2022, reducing fears over a potential recession and contributing to market steadiness.
Data from Coinglass reveals nearly 185,000 traders were liquidated in the past 24 hours, totaling over $765 million in losses.
Analysts note that Bitcoin has historically recovered higher lows from previous severe drawdowns, and key support levels like the 200-day EMA are critical to watch.

Over the past several days, digital asset prices have settled into a relatively narrow trading range after experiencing a notable decline over the weekend. Bitcoin (BTC), the largest cryptocurrency by market capitalization, is currently hovering around $78,262. This movement follows the release of the U.S. ISM Purchasing Managers Index (PMI), which climbed to its highest reading since 2022, thereby alleviating some of the economic uncertainty surrounding a potential recession.

Alongside Bitcoin’s stabilization, other major cryptocurrencies are also trading sideways with the following prices noted recently: Ethereum (ETH) at $2,328, Solana (SOL) at approximately $104.36, XRP (Ripple) at $1.63, Dogecoin (DOGE) around $0.1083, and Shiba Inu (SHIB) at $0.056923.

While prices have stabilized, the cryptocurrency market has seen significant recent volatility. According to Coinglass data, over the prior 24-hour period, 184,994 traders faced liquidations totaling $765.88 million. This volume of forced position closures underscores the risks inherent in the market's fluctuations.

The day’s top-performing digital assets included Stable, Stacks, and Canton, which registered notable gains within the 24-hour window. However, Bitcoin and broader market indices remained relatively flat, reflecting a cautious investor sentiment poised to monitor upcoming market signals.

Insights from Market Analysts and Traders

Various industry commentators and traders have weighed in on the current landscape. IncomeSharks recalled that Bitcoin has endured significantly more severe downturns in prior cycles, including an 87% decline that spanned more than a year and saw prices dip into the low $200 range. That period was marked by widespread concern that Bitcoin might lose nearly all value, yet each substantial past correction ultimately led to a higher low, continuing a longer-term upward trajectory.

Trader Jelle highlighted that Bitcoin's historical four-year cycle structure appears largely intact. While the last bear market period extended slightly beyond expectations by about two weeks, the present cycle high is roughly two weeks short of the typical 1,064-day cycle length. This cyclical timing is a key factor for market participants assessing potential future movements.

Crypto Limbo, another market observer, emphasized the importance of Bitcoin maintaining its current support levels to avoid renewed downward pressure. A brief test of the 200-day Exponential Moving Average (EMA), near $68,000, remains a possibility. This area could serve either as a launchpad for subsequent gains or, if breached, a trigger for further declines.

Meanwhile, Benjamin Cowen noted that Bitcoin is currently testing price levels last seen in April 2025. A decisive breach below these levels could lead to accelerated downside momentum, potentially pushing the price toward the 200-week simple moving average.

Recent Developments Impacting Cryptocurrency Market Sentiment

The weekend crash saw Bitcoin prices fall below $80,000, which resulted in holders of Bitcoin ETFs facing an aggregate unrealized loss of approximately $7 billion. This significant figure highlights the sensitivity of institutional product performance to price fluctuations in the underlying asset.

Additional headlines contributing to the market discourse include analyses on Bitcoin’s post-election price rally, dubbed the 'Trump Pump,' which has almost dissipated, discussions on the implications of Ethereum potentially becoming a treasury asset, and observations on Tom Lee’s BitMine investment losing $6 billion on Ethereum holdings despite continued buying.

One notable broader geopolitical development involves a $187 million agreement between the Trump family and a figure referred to as the UAE’s ‘Spy Sheikh,’ although its direct implications for cryptocurrency markets remain unclear within the current context.

Current Market Data Overview

CryptocurrencyPrice24-Hour Change
Bitcoin (BTC)$78,452.00+2.03%
Ethereum (ETH)$2,329.46+2.72%
Dogecoin (DOGE)$0.1075+3.21%
Shiba Inu (SHIB)$0.0000073+3.93%
Solana (SOL)$103.88+3.21%
XRP (Ripple)$1.63+2.29%

This data is provided as part of market news and analytics services, offering crucial insights into price trends and momentum indicators, valuable for investors and analysts tracking cryptocurrency market dynamics.

Summary and Outlook

The recent sideways trading in major cryptocurrencies appears supported by improving economic indicators, specifically the ISM PMI’s rise, which has eased recession concerns somewhat. Market participants are closely monitoring critical support levels and cyclical timing as influences shaping near-term price action. High levels of trader liquidations during recent volatility signal persistent risk, suggesting cautious positioning may remain prudent.

Risks
  • Significant liquidation volume recently experienced illustrates the volatility and risk in cryptocurrency trading.
  • Bitcoin’s ability to hold current support levels is uncertain; a drop below the 200-day EMA near $68,000 could prompt further declines.
  • ETF investors currently face a $7 billion unrealized loss due to recent Bitcoin price declines, which may affect institutional sentiment.
  • The cyclical timing of Bitcoin’s market cycles still carries uncertainty, with deviations from typical patterns warranting close observation.
Disclosure
Education only / not financial advice
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Ticker Sentiment
BTC - neutral ETH - neutral SOL - neutral XRP - neutral DOGE - neutral
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