Digital assets are trading higher in early U.S. hours Monday, recovering from weekend volatility as Wall Street pares back steep overnight losses.
U.S. equity index futures had at one stage pointed to declines of more than 2%, but the tone improved significantly by the open. About an hour into the session, the Nasdaq is lower by just 0.1%, while the S&P 500 and Dow Jones Industrial Average are posting only modest dips, reflecting a far more measured response than futures had implied.
In contrast, traditional defensive assets are extending gains. Gold is up 2%, crude oil remains elevated by roughly 7%, and the U.S. dollar index has advanced 1%, marking one of its strongest showings in recent weeks.
Bitcoin (BTC) has climbed to $68,600, up 2.3% over the past 24 hours. Ether (ETH) is higher by 1.4%, with Solana (SOL) and XRP (XRP) posting comparable gains. The move higher follows a choppy weekend dominated by geopolitical tensions.
Crypto-linked equities are outperforming the broader market. Circle (CRCL) shares have surged 12%, Strategy (MSTR) is up 6%, and Galaxy Digital (GLXY) has gained 4.7%, signaling renewed interest in digital asset exposure through public markets.
Meanwhile, incoming economic data suggest strengthening U.S. momentum. The ISM manufacturing PMI printed at 52.4 for February, extending the sector’s expansion and marking the first consecutive readings above 50 since late 2022. This follows a stronger-than-expected Chicago Business Barometer reading of 57.7, reflecting the fastest pace of activity growth since May 2022.
Against a backdrop of Middle East tensions, higher oil prices, and last week’s hotter-than-expected producer price data, expectations for a March rate cut have largely faded ahead of the Federal Reserve’s March 18 meeting.
Although reduced odds of near-term monetary easing would typically weigh on risk assets like crypto, markets may have already priced in a firmer policy stance — helping digital assets and related stocks show resilience despite the evolving macro environment.
