Bitcoin rose above $82,000 on Monday as falling oil prices helped improve investor confidence in risky assets. The world’s largest cryptocurrency recovered after falling last week.
Bitcoin climbed as much as 2.3% during early Asian trading. It was trading at around $82,400 by noon in Singapore, showing a recovery from its recent decline, Bloomberg reported. Ether rose as much as 3.7%, while Solana climbed more than 4.6% during the session.
Because of concerns about the market, a risk-off period is when investors move away from riskier investments.
He said the move was a “retracement after a big risk-off week,” according to Bloomberg. Other major cryptocurrencies also gained. The recovery in cryptocurrencies came as oil prices moved lower. Oil had reached a five-month high before retreating, helping improve demand for assets that carry higher investment risks. Signs that oil supplies from the Middle East had remained steady since the US war with Iran began also supported market sentiment. Damien Loh, chief investment officer at Ericsenz Capital, described Bitcoin’s latest rise as a recovery after a difficult week for risky assets.
Brent crude prices dropped as much as 2%. At the same time, futures linked to the S&P 500 rose around 0.8%, while Nasdaq 100 futures gained 1.3%, according to Bloomberg. Bitcoin had fallen roughly 3% last week as stocks also sold off.
Oil prices fell while US stock futures moved higher. The improvement in market conditions helped Bitcoin recover from last week’s losses. Technology shares led the decline amid fresh concerns about the huge amounts of money companies are spending on artificial intelligence (AI).
Bitcoin price outlook remains uncertain
Crude oil was still trading at around $107 a barrel, above the levels seen during most of the previous week. US-listed spot Bitcoin exchange-traded funds (ETFs) recorded $228.6 million in net outflows last week. This followed $681 million in outflows during the previous week, Bloomberg reported. The cryptocurrency has remained between $80,000 and $85,000, despite Monday’s recovery above $82,000.
Because of the broader market environment , Bloomberg reported, he also warned that Bitcoin could face further losses.
He said there were no clear immediate factors that could push the cryptocurrency to new record levels. Loh warned that Bitcoin may struggle to reach new highs in the near term. Oil prices remain high despite Monday’s decline. This means energy prices continue to be an important factor for financial markets. Institutional investors have also reduced their exposure to Bitcoin. Bitcoin is still trading within the range seen last week. This shows that the latest rise has not yet pushed Bitcoin beyond its recent trading range.
