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Bitcoin was trading close to $78,000 early Tuesday as Asian markets found their footing following a turbulent period of volatility in precious metals, with traders feeling reassured by a significant rise in US factory activity overnight.
Equities across the region advanced. Japan’s Nikkei surged by 2.5% to recover Monday’s losses, South Korea’s KOSPI increased by 4%, and futures indicated a recovery in Hong Kong, as investors returned to risk-taking after last week’s fluctuations.
US markets appeared more stable at the opening, with S&P 500 futures up by 0.3% as traders prepared for a busy earnings season in the upcoming sessions.
Market snapshot
- Bitcoin: $78,719, up 2%
- Ether: $2,334, up 1.8%
- XRP: $1.61, up 0.5%
- Total crypto market cap: $2.72 trillion, up 2.6%
Liquidations Increase As Sentiment Shifts Against Leverage
However, the crypto market still bore the marks of the recent sell-off. Bitcoin investors liquidated $2.56B in the past few days, according to CoinGlass data, after digital assets fell alongside equities and metals in a broader risk aversion.
The liquidations of both short and long Bitcoin positions remained significantly lower than the record $19B in crypto liquidations that occurred after President Donald Trump’s tariff announcement concerning China, yet the recent wave highlighted how swiftly leverage can disintegrate when sentiment shifts.
Traders were also closely monitoring metals following erratic movements linked to Trump’s decision to nominate Kevin Warsh as his choice to head the Federal Reserve.
Kevin Warsh has referred to Bitcoin as an “important asset,” and he could soon lead the world’s most influential central bank#FederalReserve #BTChttps://t.co/zjD4vw3Wto
— Cryptonews.com (@cryptonews) January 30, 2026
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Investors perceive Warsh as more likely to reduce the Fed’s balance sheet, a perspective that can elevate bond yields and diminish the appeal of assets that provide no yield.
By Tuesday morning in Asia, the pressure of selling subsided and prices rebounded. Gold increased by 3% to $4,800 per ounce, nearly 9% above Monday’s lows, while silver rose by 5% to $83.34.
The latest movements followed a forced unwinding of crowded positions that affected multiple markets, as traders sold other assets to offset losses elsewhere. “The broader flow picture indicates a clear risk-off rotation, with investors reallocating towards cash and gold amid escalating macroeconomic and political uncertainty,” Bitfinex analysts noted.
Earnings Optimism Balances Rate And Yield Concerns
Macro data contributed to the prevailing mood. US factory activity expanded for the first time in a year in January, as indicated by PMI figures, nudging yields higher without significantly altering expectations for future rate cuts.
Treasury markets remained steady in Asia, with benchmark 10-year yields around 4.275% in Tokyo and two-year yields near 3.57%, after the front end ticked higher in New York.
Wall Street finished higher on Monday, buoyed by chipmakers and other AI-related companies, while Alphabet shares reached a record high ahead of results later this week. Disney dropped 7.4% after warning of a decline in international visitors to its US theme parks and weaker performance in its TV and film sector, with AMD and Super Micro Computer set to report after the bell on Tuesday.
In Australia, markets were looking forward to a central bank decision later Tuesday. A robust jobs market and a hotter-than-expected fourth-quarter inflation report left traders anticipating a 25 basis point rate hike, with Australian shares rising 1.3% early on, and the Australian dollar holding steady at $0.6958 after its strongest monthly increase in three years in January.
Currencies also stabilized following last week’s sharp dollar movements. The euro traded around $1.18, while the yen hovered near 155.54 per dollar, giving back about half the gains it achieved during a surge of speculation regarding potential joint US-Japan measures to support the Japanese currency.
The post Asia Market Open: Bitcoin Steadies Around $78K As Calm Returns To Asian Markets appeared first on Cryptonews.
