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.
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.
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. 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). Damien Loh, chief investment officer at Ericsenz Capital, described Bitcoin’s latest rise as a recovery after a difficult week for risky assets.
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.
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.
Other major cryptocurrencies also gained.
