Digital assets are recovering from weekend volatility in early U.S. trading Monday, mirroring a notable rebound in American equities after sharp overnight weakness.
At their trough, U.S. stock index futures were pointing to losses exceeding 2%. However, about an hour after the opening bell, the pullback has proven far milder. The Nasdaq is lower by just 0.1%, while the S&P 500 and Dow Jones Industrial Average are hovering near flat with only slight declines.
Safe-haven flows remain evident across traditional markets. Gold is up roughly 2%, crude oil prices are holding gains of about 7%, and the U.S. dollar index is advancing 1% in what is shaping up to be one of its strongest sessions in recent weeks.
Bitcoin (BTC) has risen to $68,600, marking a 2.3% gain over the past 24 hours. Ether (ETH) is up 1.4%, with Solana (SOL) and XRP (XRP) posting similar advances. The move higher comes after a turbulent weekend driven by geopolitical tensions.
Crypto-related equities are outperforming the broader market. Circle (CRCL) shares have jumped 12%, Strategy (MSTR) is up 6%, and Galaxy Digital (GLXY) has gained 4.7%, underscoring renewed investor interest in digital asset-linked plays.
On the economic front, fresh data suggest improving momentum. The ISM manufacturing PMI registered 52.4 in February, extending the sector’s expansion and marking the first consecutive readings above 50 since late 2022. That follows Friday’s Chicago Business Barometer, which climbed to 57.7 — well above expectations — signaling the strongest pace of U.S. activity growth since May 2022.
With Middle East tensions lifting oil prices, hotter-than-expected producer price data last week, and manufacturing activity picking up, expectations for a March rate cut have effectively faded ahead of the Federal Reserve’s March 18 meeting.
Ordinarily, diminished prospects for near-term easing would weigh on risk assets like crypto. However, markets may have already priced in a firmer monetary policy outlook, helping digital assets remain resilient despite the shifting macro backdrop.
