Crypto-linked stocks extended their losses on Monday, even as bitcoin and other major tokens staged a modest rebound from steep weekend declines.

Bitcoin traded just under $79,000 in midday U.S. hours after bouncing from weekend lows below $75,000. At around $78,700, the largest cryptocurrency was up about 2% over the past 24 hours and roughly 7% above its weakest weekend level, though it remained more than 10% lower than a week earlier.

Ether also rose roughly 2% on the day but was still down about 19% on a week-over-week basis, reflecting continued pressure across the broader crypto market.

The weekend selloff “broke key short-term support and stood out for its speed and depth, even by typical weekend standards,” said Adrian Fritz, chief investment strategist at 21Shares. He attributed the move to another wave of forced deleveraging, noting that more than $2 billion in crypto derivatives were liquidated in a short period. “Liquidations in perpetual futures accelerated the downside momentum rather than discretionary spot selling,” Fritz said.

U.S. equity markets moved higher on Monday, highlighting a growing divergence between traditional assets and crypto. The Nasdaq and S&P 500 each gained about 0.6%, while the Dow Jones Industrial Average rose 0.9%. While bitcoin closed January with its fourth consecutive monthly loss, market analyst Ryan Detrick pointed out that the Dow posted a ninth straight monthly gain—placing it among the longest winning streaks in its history. He added that stocks have often delivered strong returns following such runs.

Gold and silver were volatile but traded modestly lower after recording their worst one-day selloff since 1980 on Friday.

The modest rebound in crypto prices had little impact on digital asset-related equities, which remained broadly weaker. Robinhood shares fell 9%, Circle dropped 5%, while Coinbase and Strategy were each down around 3%.

On the macro front, fresh U.S. data showed unexpected strength in manufacturing activity. The ISM manufacturing PMI rose to 52.6 in January, well above forecasts of 48.5, marking the first expansion in factory activity in 12 months and the strongest reading since 2022.

January is typically a reorder-heavy month following the holiday season, a seasonal trend that also lifted PMI readings in January 2024 and January 2025.

Looking ahead, investors are focused on Friday’s U.S. January jobs report for further insight into the Federal Reserve’s policy outlook, after the central bank paused rate cuts at its January meeting.