Bitcoin was slightly higher on Monday as the sharp drop in oil prices helped boost Asian stock markets.
As of 6:35 a.m. UTC, the leading cryptocurrency by market value was trading at nearly $77,200, up 0.4% from midnight UTC, according to CoinDesk data. At that level, bitcoin was trading just above its widely followed 50-day simple moving average of around $76,940. Traders and chart analysts are closely monitoring this key level, with sustained breaks above it generally considered bullish. Other major cryptocurrencies were also slightly 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 measure.
West Texas Intermediate crude oil futures fell more than 5% to around $91 a barrel, extending their sharp decline from last Wednesday’s peak above $104. Asian stocks rebounded, with India’s Nifty up more than 1%, Japan’s Nikkei up almost 3% in early trading and Australia’s S&P/ASX 200 up 0.4%.
The moves follow reports over the weekend that a deal to reopen the Strait of Hormuz, a critical chokepoint that accounted for more than 20% of global oil flows before Iran’s war began in late February, was in its final stages.
Last week, Iran’s IRGC claimed to have authorized the passage of more than 20 tankers through the strait, although this volume remains well below pre-war levels.
US Secretary of State Marco Rubio said US and Iranian negotiators had “some pretty solid things on the table” and that a deal to end the war between the two countries could be reached on Monday. He said the United States was prepared to exhaust all diplomatic options, but would seek other means if a satisfactory agreement could not be reached.
Analysts remain cautious 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 down. Bitcoin can absorb some institutional selling if stable coin liquidity remains firm and long-term holders remain patient. Sustained ETF redemptions would make each rally more difficult to sustain,” Timothy Misir, head of research at BRN, said in an email.
India-based FIU-registered exchange CoinSwitch noted that finalizing a peace deal between the United States and Iran would be necessary to achieve lasting gains.
“Sentiments improved after reports of progress in U.S.-Iran peace talks, including a possible reopening of the Strait of Hormuz, helping $BTC rebound towards $77,000. Still, the deal is not finalized, so traders are not yet fully on board with the risk. Exchange data also remains a point of vigilance, with 18,528 $BTC move to centralized exchanges, suggesting potential pressure on the selling side,” the exchange said in an email.
