Bitcoin was slightly higher on Monday as a sharp drop in oil prices helped lift Asian stock markets.
At 6:35 a.m. UTC, the leading cryptocurrency by market cap was trading near $77,200, up 0.4% from midnight UTC, according to CoinDesk data. At that level, bitcoin was trading just above the commonly tracked 50-day simple moving average of around $76,940. Traders and chart analysts monitor this key level closely, with sustained breakouts above what is typically considered bullish. Other major cryptocurrencies were also modestly higher.
XRP and Solana (SOL) gained 0.6% or more, while Ether (ETH) rose 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 fell more than 5% to around $91 a barrel. barrel, extending a steep slide from last Wednesday’s high above $104. Asian shares rose, with India’s Nifty up over 1%, Japan’s Nikkei up nearly 3% in early trade and Australia’s S&P/ASX 200 up 0.4%.
The moves follow weekend reports that a deal to reopen the Strait of Hormuz, a critical choke point 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 the passage of over 20 tankers through the strait, although the volume remains well below pre-war levels.
US Secretary of State Marco Rubio said 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 on Monday. He said the United States is prepared to exhaust every diplomatic option but would pursue other means if a good deal could not be reached.
Analysts still maintained a cautious view 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 are slow. Bitcoin may absorb some institutional selling if stablecoin liquidity remains firm and long-term holders remain patient. Sustained ETF redemptions would make any rally harder to sustain,” Timothy Misir, head of research, BRN, said in an email.
The India-based FIU-registered CoinSwitch exchange noted that the completion of a US-Iran peace deal would be necessary for further sustained gains.
“Sentiments improved following reports of progress in the US-Iran peace talks, including a possible reopening of the Strait of Hormuz, which helped BTC bounce back towards $77K. Still, the deal is not complete, so traders are not yet fully risk-averse. Exchange data also remains a watchpoint, with 18,528 BTC moving net into the potential exchanges on one email,” the press release said, the email said.
