Bitcoin Steady Above $70,000 After Japan Vote

Key Moments

Bitcoin Trades Steady After Volatile Week

Bitcoin remained firmly above the $70,000 mark on Monday, consolidating gains after a sharp turnaround late last week from levels near $60,000. The move came as investors reassessed their tolerance for risk following extensive liquidations and shifted focus toward upcoming U.S. economic releases later in the week.

The world’s largest cryptocurrency was last quoted 1.5% higher at $70,402.5 by 01:25 ET (06:25 GMT), moving further away from a roughly 16-month low of about $60,187.0 hit earlier in the week.

On Friday, Bitcoin briefly reestablished itself above $70,000, jumping more than 12% in a single session. A broad advance in technology shares and precious metals contributed to a wider rally across risk assets.

The recovery was supported by value-seeking investors stepping in after the pronounced selloff, alongside signs of stabilization in global financial markets.

Drivers Behind Recent Bitcoin Volatility

The pronounced drop in Bitcoin last week coincided with a broader risk-off move across global markets. A pullback in U.S. technology names – especially companies associated with artificial intelligence – combined with forced unwinding in crypto futures intensified the downward move in the token.

Market participants also pointed to ongoing outflows from Bitcoin spot exchange-traded funds and a scaling back of leveraged positions as key contributors to heightened price swings.

Japan Election Outcome Supports Risk Appetite

Political developments in Japan added another layer to the shifting risk backdrop. Japanese Prime Minister Sanae Takaichi achieved a landslide election victory on Sunday, reinforcing her capacity to advance fiscal stimulus and tax reductions.

The strong result lifted regional equities and was linked to a renewed willingness to take on risk in certain global asset classes.

The yen had weakened ahead of the vote outcome, but later stabilized alongside gains in local stock markets, helping to underpin broader market sentiment.

Focus Turns to U.S. Economic Data and Fed Outlook

Market attention is now turning to a series of important U.S. economic indicators scheduled for later this week. These include delayed employment data on Wednesday and the consumer price index release on Friday.

The forthcoming reports have the potential to influence expectations for the Federal Reserve’s interest rate trajectory. Current market pricing reflects the possibility of rate cuts later in 2026 if inflation moderates and the labor market shows signs of slowing.

Altcoins Trade in Narrow Ranges

Price action across major alternative cryptocurrencies remained relatively muted on Monday, with most tokens holding within confined ranges after rebounding from recent lows.

While Bitcoin’s rebound and the improvement in global risk sentiment provided a constructive backdrop, the altcoin complex largely moved sideways, with selective declines among meme tokens such as Dogecoin, which slipped 2%.