Bitcoin begins to rally after huge weekend dump as global markets open with bullish intent

Bitcoin experienced a sharp decline over the weekend, falling from approximately $84,274 on Friday to a low of $74,712 by Sunday evening, a drop of about 11.6%, attributed to thin liquidity typical of weekend trading where smaller orders can cause significant price swings. As global markets opened on Monday, Bitcoin showed resilience, recovering to around $77,645, marking a 3.6% bounce from its low. This recovery tests whether the weekend sell-off was merely a low-liquidity shakeout. The broader context involves macroeconomic pressures, including market wobbles due to Fed chair expectations (specifically the nomination of Warsh), which has generally favored a stronger dollar and pressured risk assets like Bitcoin. Furthermore, U.S. spot Bitcoin ETFs have seen persistent net outflows totaling $3.2 billion between January 16 and January 30, signaling bearish positioning. While global markets, including S&P 500 futures and commodities like oil and gold, showed signs of bracing for confrontation, Bitcoin's immediate Monday rally suggests buyers are still present, setting up a crucial test for whether the price can sustain this rebound or if the weekend low will be retested upon the return of weekday liquidity.

(Source：CryptoSlate)