Bitcoin climbed above USD 84,000 on Monday after an earlier dip toward USD 83,500. The leading cryptocurrency traded near USD 84,050, approaching Sunday's high of approximately USD 84,145, according to CoinDesk.
The recovery came as oil prices weakened and several major cryptocurrencies posted gains. Ether rose 2.4% to USD 2,566.45, while XRP advanced 1.1%. BNB gained 0.8%, and Dogecoin climbed 2.4%. The TRUMP token also rose 3%.
Solana and Cardano recorded gains as the broader market moved higher. Their advances reflected a recovery that extended beyond Bitcoin and Ether.
According to Purvang Mashru, lead analyst at BitDelta India, nine of the ten largest cryptocurrencies advanced over the previous 24 hours. Avalanche led the gains with a 5.1% rise to USD 10.91, while Chainlink increased 2.4% to USD 13.35. Solana added 1.2%, alongside gains in BNB, XRP, Dogecoin and Cardano.
The market's rebound followed a difficult start to October for Bitcoin. Despite its historical reputation for strong October performance, often called "Uptober," the cryptocurrency faced pressure from fund withdrawals and wider economic concerns.
Falling Oil Prices Offer Some Market Support
Oil prices declined at the start of the new trading week, providing a change in the macroeconomic backdrop. West Texas Intermediate (WTI) futures fell 1.8% to USD 90.28, reversing part of Thursday's sharp rise.
The decline followed President Donald Trump's Friday announcement of an agreement for Russia to supply 300,000 metric tons of diesel fuel to domestic and international markets. The move also marked a partial easing of U.S. sanctions on Russian oil imports.
Trump separately claimed that Russia and Ukraine had agreed to an immediate energy ceasefire to halt attacks on infrastructure. However, Ukrainian officials said they had not been consulted about the arrangement.
Russian military strikes on Ukraine's energy grid continued despite the announcement. As a result, uncertainty surrounding the conflict remained part of the broader economic picture.
Although cheaper oil coincided with Bitcoin's recovery, other factors continued to influence market sentiment. Treasury yields reached their highest levels in 24 years during the week ending October 9, according to Mashru.
High yields can affect demand for riskier assets by making traditional investments more attractive. Meanwhile, investors continued to assess the implications of recent fund withdrawals and upcoming economic data.
Read More: Why USD 74,500 Could be the Next Level to Watch
Bitcoin ETF Outflows Keep Institutional Sentiment in Focus
U.S.-listed spot Bitcoin exchange-traded funds recorded USD 681 million in net outflows during the week ending October 9, according to SoSoValue. This marked their largest weekly withdrawal since late June.
Most of the withdrawals occurred on October 7 and 8, pointing to a difficult period for the funds. The outflows followed Bitcoin's strong performance during the September quarter, as some investors locked in gains.
Vikram Subburaj, CEO of India-based Giottus Exchange, said ETF flows remained volatile. He also linked the heavy withdrawals on October 7 and 8 to cautious institutional sentiment.
The withdrawals added pressure to Bitcoin's October performance, even as the cryptocurrency recovered above USD 84,000. They also raised questions about whether the latest rebound could attract sustained demand from institutional investors.
Both Mashru and Subburaj identified USD 82,000 as a key support level. Bitcoin bulls must defend that price area to limit the risk of a deeper decline.
The next major market catalyst arrives on October 14, when the United States releases its latest inflation data. Investors will monitor the figures for clues about the economic outlook and their potential implications for financial markets.
Bitcoin's price action, ETF flows, and oil price movements remain key factors shaping market conditions ahead of the release.
Conclusion
Bitcoin recovered above USD 84,000 as oil prices fell and major altcoins advanced. However, USD 681 million in weekly spot Bitcoin ETF outflows and elevated Treasury yields continued to weigh on sentiment. The October 14 U.S. inflation report represents the next major event for market participants to watch.