BTC rebounds from sub-$75K lows as crypto market stages recovery following $2.5 billion in liquidations.
The crypto market is showing signs of recovery after a brutal weekend that saw Bitcoin plunge below $75,000 for the first time since April 2025.
Bitcoin is trading at approximately $78,500 on Monday, up around 2.8% over the past 24 hours. The recovery comes after BTC dropped as low as $74,876 over the weekend, its lowest level since April 2025.
The sell-off wiped more than $200 billion from Bitcoin's market cap in just seven days, with the digital asset falling roughly 12% week-over-week. Ethereum followed a similar pattern, dropping more than 22% weekly to trade near $2,200 before rebounding to approximately $2,318 today.
Saturday's liquidations across cryptocurrencies totaled $2.56 billion, making it the tenth-largest single-day liquidation event on record according to Coinglass data.
Analysts attribute the crash to a combination of factors: rising geopolitical tensions, declining tech equities triggered by disappointing earnings, and weakness in precious metals markets. The initial drop forced leveraged traders to sell their positions, intensifying the downward spiral.
Market sentiment remains in "extreme fear" territory, though the recovery suggests buyers are stepping in at key support levels. The $75,000 zone has become a critical support area, while $80,000 represents structural resistance according to market analysts.
DeFi tokens led the rebound, with Hyperliquid (HYPE) among the top performers, surging nearly 20% in 24 hours.
Digital asset investment products recorded $1.7 billion in outflows last week, bringing year-to-date outflows to $1 billion according to CoinShares. This signals continued institutional caution despite the price recovery.
Traders are closely watching whether Bitcoin can reclaim $80,000, which would signal renewed strength. A failure to hold current levels could see another test of the $75,000 support zone.
This is a developing story. Market conditions remain volatile and prices may fluctuate significantly in the coming hours.
Wall Street giant Citigroup projects Bitcoin could reach $143,000 within 12 months, citing ETF demand and regulatory tailwinds as key catalysts.
The largest US bank is assessing spot and derivatives trading services as regulatory clarity enables traditional finance to deepen crypto involvement.
Senator Boozman postpones Digital Asset Market Clarity Act from January 15 to final week of January to secure bipartisan support.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
