Bitcoin rose above 68,000 dollars in early US trading on Monday, rebounding from weekend lows even as geopolitical tensions in the Middle East continued to weigh on global sentiment. The move came as equity markets opened with far smaller losses than initially feared following US strikes against Iran.
At one point overnight, US stock index futures had signaled declines of more than 2 percent. However, roughly one hour into the cash session, the Nasdaq was down just 0.1 percent, while the S&P 500 and Dow Jones Industrial Average posted only modest losses. The muted reaction suggests that investors may have already priced in a significant portion of the geopolitical risk.
Bitcoin traded near 68,600 dollars, up approximately 2.3 percent over the past 24 hours. Ether gained around 1.4 percent, with Solana and XRP posting similar advances. The rebound highlights crypto’s ability to recover quickly after sharp weekend selloffs, particularly when broader market conditions stabilize.
Crypto related equities outperformed the underlying tokens. Shares of Circle advanced 12 percent, while Strategy rose 6 percent and Galaxy Digital gained nearly 5 percent. The strength in these stocks points to renewed risk appetite among investors seeking leveraged exposure to digital asset trends.
Traditional safe haven assets remained elevated. Gold was up about 2 percent, holding near record levels after surging on the initial outbreak of hostilities. Crude oil continued to trade roughly 7 percent higher amid concerns over potential supply disruptions in the Gulf region. The US dollar index strengthened by 1 percent, reflecting global demand for dollar denominated assets during periods of uncertainty.
On the macroeconomic front, fresh data indicated that the US economy accelerated in February. The ISM manufacturing Purchasing Managers Index registered 52.4, marking another month of expansion and the first consecutive readings above 50 since late 2022. The Chicago Business Barometer also rose sharply to 57.7, exceeding expectations and signaling the strongest pace of activity growth since mid 2022.
Stronger economic momentum, combined with hotter than expected producer price data last week and rising oil prices, has significantly reduced expectations of a near term Federal Reserve rate cut. Market participants now see a March rate reduction as unlikely ahead of the Fed’s upcoming meeting.
Under normal conditions, diminishing rate cut expectations and a stronger dollar might weigh on cryptocurrencies. However, the current price action suggests that tighter monetary policy may already be reflected in asset valuations. The stabilization of equity markets and continued expansion in US manufacturing appear to be providing near term support for risk assets, including Bitcoin.
