After a weekend rout, Bitcoin prices rebounded, trading above $78,000 on Tuesday. However, the cryptocurrency remains under pressure, struggling to break past the $80,000 mark. The downturn was fueled by substantial liquidations and uncertainty surrounding U.S. monetary policy. Investors are wary of potential interest rate hikes, impacting market sentiment and causing volatility in the crypto market.

The recent price drop was triggered by a wave of leveraged position liquidations, highlighting the speculative nature of the market. Reports indicate that billions of dollars in crypto bets were wiped out. Moreover, the delayed release of the U.S. jobs report due to a government shutdown added to the macroeconomic uncertainty. This has led to caution among investors in the crypto market.

Simultaneously, a White House meeting between crypto firms and banks failed to resolve differences on stablecoin yields. Banks are concerned about risks associated with yield-bearing stablecoins. Most altcoins experienced a slight rebound, with Ethereum and Cardano showing gains. Market participants will be watching the next moves of the Federal Reserve and any regulatory changes in the stablecoin space.