HONG KONG: Bitcoin popped back above US$82,000 on Monday, rebounding with risk assets as oil prices declined.
The original cryptocurrency climbed as much as 2.3% in early Asia trading and was hovering around US$82,400 at noon in Singapore. Smaller tokens also advanced. Ether was up as much as 3.7%, while Solana gained more than 4.6%.
Cryptocurrencies have joined a tentative recovery in risk appetite after oil retreated from a five-month high on signs that supplies from the Middle East have held up since the US war with Iran broke out. Brent crude fell as much as 2%, while a gauge of S&P 500 futures was up roughly 0.8% and Nasdaq 100 futures were up 1.3%.
Improving macro conditions have helped Bitcoin reverse its trend from last week, when it fell roughly 3% along with a selloff in stocks led by technology shares amid renewed doubts about massive spending on artificial intelligence.
Today’s move higher is a “retracement after a big risk-off week,” said Damien Loh, chief investment officer at Ericsenz Capital.
“No news is good news,” he said. “I don’t see any near-term drivers for it to break new highs, and I think the risk is for the downside given overall risk environment.”
Oil remains elevated at roughly US$107 a barrel, higher than prices for most of last week.
Institutional demand has also pulled back from Bitcoin for two consecutive weeks. US-listed spot Bitcoin exchange-traded funds recorded US$228.6 million in outflows last week following US$681 million in outflows the previous week.
Bitcoin remains within last week’s trading range of US$80,000 to US$85,000.