Bitcoin bounced back above $78,500 on Monday, climbing roughly 4% after briefly dipping near $75,000 earlier in the day. Ethereum followed suit, rising nearly 6% to around $2,320.

While the recovery was welcome, analysts were quick to caution that this move looks more like a technical relief bounce than the start of a fresh uptrend.

So what caused the rebound?

Most signs point to post-liquidation short covering and oversold conditions, rather than new demand flowing into crypto. As leveraged positions were flushed out during the sell-off, prices stabilized and snapped back alongside a broader recovery in U.S. equities following a stronger-than-expected ISM print.

What triggered the drop in the first place?

The recent volatility was driven largely by macro pressure — specifically renewed concerns around U.S. interest rates. Hawkish signals from the Federal Reserve and uncertainty around the upcoming Fed chair nomination pushed yields higher and strengthened the dollar, weighing on risk assets like crypto.

What this means going forward

For now, analysts see this move as stabilization, not confirmation of a sustained rally. If elevated yields and a firm dollar persist, crypto prices may continue to react to macro data rather than crypto-specific catalysts.

That said, choppy markets are nothing new — and they don’t mean you have to sit on the sidelines.

💡 Earn Through the Chop

When prices are moving sideways (or whipsawing), many users shift focus from timing the market to earning consistently. Whether you’re stacking coins through offers, games, or daily bonuses, staying active can help you make progress regardless of short-term price swings.