By Alex Kozul-Wright
Bitcoin's selloff has seemingly stalled. For now, its fate remains intimately bound up with the value of the U.S. dollar.
The price of Bitcoin was up 0.7% to $78,290.2 early Tuesday. Meanwhile other cryptocurrencies Ethereum and XRP were down slightly -- by 0.1% and 0.3%, respectively.
The world's largest crypto has stabilized following last weekend's rout, during which the price of Bitcoin dropped under $75,000 -- its lowest level since April 2025.
Steep price falls followed President Donald Trump's nomination of Kevin Warsh as the next head of the Federal Reserve on Friday.
Traders worried that Warsh's potentially hawkish approach to monetary policy would dent prices.
The nomination also bolstered the U.S. dollar, which raised the opportunity cost of holding dollar-denominated assets.
However, the currency fell back early Tuesday -- the DXY index dropped by 0.1%, which lifted the price of Bitcoin.
Elsewhere, Trump administration officials met with cryptocurrency industry leaders Monday to advance legislation aimed at regulating digital asset markets.
While the bill, known as the Digital Asset Market Clarity Act, has stalled, recent meetings seem to have lifted sentiment around digital assets.
"We've seen improved buy orders emerge in Bitcoin on the move into the April 2025 lows," said Chris Weston, Pepperstone's head of research.
He added: "With technical support helping price rebound toward 78k. Buyers are now looking for a break above $79,328, the weekend high, and a close back above $80k."
Write to Alex Kozul-Wright at alexander.kozul-wright@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
February 03, 2026 05:39 ET (10:39 GMT)
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