Bitcoin trades above $77,000 as oil's 5% slide pushes Asian equities higher
TL;DR
Bitcoin trades above $77,000, boosted by a 5% drop in oil prices, which has positively impacted Asian stock markets. Major cryptocurrencies like XRP and Solana also saw slight gains but remain below their 50-day moving averages.
Key points
- Bitcoin trades near $77,200, up 0.4%
- Oil prices dropped more than 5% to around $91 per barrel
- Asian stock markets saw significant gains
- XRP and Solana rose but remain below their 50-day moving averages
- Deal to reopen the Strait of Hormuz is nearing completion
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West Texas Intermediate crude oil
Bitcoin BTC$77,389.41 was slightly higher on Monday as a sharp decline in oil prices helped lift Asian stock markets.
At 6:35 UTC, the leading cryptocurrency by market value traded near $77,200, up 0.4% from midnight UTC, according to CoinDesk data. At that level, bitcoin was trading just above its widely tracked 50-day simple moving average of around $76,940. Traders and chart analysts monitor this key level closely, with sustained breakouts above it typically viewed as bullish.Other major cryptocurrencies were also modestly higher.
XRP and Solana (SOL) rose 0.6% or more, while Ether (ETH) gained 0.4%. However, all three continued to trade below their respective 50-day moving averages, lagging Bitcoin on this metric.
Futures tied to West Texas Intermediate crude oil dropped more than 5% to around $91 per barrel, extending a steep slide from last Wednesday’s high above $104. Asian equities rallied, with India’s Nifty climbed over 1%, Japan’s Nikkei rose nearly 3% in early trade, and Australia’s S&P/ASX 200 added 0.4%.
These moves follow weekend reports that a deal to reopen the Strait of Hormuz, a critical chokepoint that accounted for over 20% of global oil flows before the Iran war began in late February, was in its final stages.
Last week, Iran’s IRGC claimed to have allowed passage of over 20 tankers through the strait, though that volume remains well below pre-war levels.
U.S. Secretary of State Marco Rubio said that Washington and Iranian negotiators have "a pretty solid thing on the table" and a deal to end the war between the two countries could be reached Monday. He said that the U.S. is ready top exhaust every diplomatic option but would pursue other means if a good deal could not be reached.
Analysts still maintained a cautious outlook on bitcoin, citing more than $2 billion in outflows from spot ETFs over the past two weeks.
"For crypto, the key signal is whether ETF outflows slow. Bitcoin can absorb some institutional selling if stablecoin liquidity remains firm and long-term holders stay patient. Sustained ETF redemptions would make every rally harder to hold," Timothy Misir, head of research, BRN, said in an email.
India-based FIU-registered CoinSwitch exchange noted that finalization of a U.S.-Iran peace deal would be needed for further sustained gains.
"The sentiments improved after reports of progress in U.S.–Iran peace talks, including a possible reopening of the Strait of Hormuz, helping BTC rebound toward $77K. Still, the deal is not finalized, so traders are not fully risk-on yet. Exchange data also remains a watchpoint, with 18,528 BTC moving net into centralized exchanges, suggesting potential sell-side pressure," the exchange said in an email.
Q&A
What caused Bitcoin to rise above $77,000?
Bitcoin's rise above $77,000 was primarily driven by a sharp decline in oil prices, which lifted Asian stock markets.
How did Asian equities perform following the oil price drop?
Asian equities rallied, with India's Nifty climbing over 1%, Japan's Nikkei rising nearly 3%, and Australia's S&P/ASX 200 adding 0.4%.
What is the significance of Bitcoin trading above its 50-day moving average?
Trading above its 50-day moving average is typically viewed as a bullish indicator for Bitcoin, suggesting potential upward momentum.
