Mumbai, January 3: Bitcoin showed signs of stabilisation on Tuesday morning as the cryptocurrency climbed back to USD 78,748 after a turbulent start to the week. The digital asset had briefly plunged below the USD 78,000 mark on Monday, hitting its lowest level in nine months.

The recent price volatility comes as investors weigh macroeconomic signals from the US Federal Reserve and escalating geopolitical tensions. Market sentiment remains cautious, with the broader digital asset space experiencing a period of high sensitivity to traditional financial indicators and regulatory uncertainty. Bitcoin Price Today February 2, 2026: BTC Price Tumbles to 9-Month Low Below USD 78,000 Mark Amid Fed Uncertainty and Geopolitical Tensions.

Bitcoin Market Outlook

The recovery to USD 78,748 at 8:00 AM IST provides a modest reprieve for traders who witnessed a deep slide over the weekend. On Monday, the market was rattled when Bitcoin slipped below the psychologically significant USD 76,000 level. This breach even affected institutional giants, as BTC briefly traded below the average purchase price of some major corporate holders.

Market analysts suggest that the "squeeze risk" remains high, even with the current bounce. Technical indicators show that while buyers are attempting to defend the current range, the overall control remains with the sellers until a more definitive breakout above previous resistance levels occurs.

Cryptocurrency Technical Analysis

The pressure on Bitcoin is largely attributed to a hawkish tilt from the US Federal Reserve. Unexpectedly high inflation data in the form of US PPI figures has led markets to push back expectations for interest rate cuts. This has strengthened the US Dollar, making riskier assets like Bitcoin less attractive to institutional investors in the short term. Bitcoin Price Today, January 31, 2026: BTC Price Recovers Slightly After Slump, Trading Near USD 84,000 Mark..

Geopolitical developments have further complicated the trading environment. As global uncertainty persists, the crypto market has mirrored the volatility seen in traditional equities and commodities. Investors are now closely watching if Bitcoin can maintain its position above USD 78,000 to avoid a retest of its recent nine-month lows.

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(The above story first appeared on LatestLY on Feb 03, 2026 08:04 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).