Bitcoin Holds Above Key Support $77k as Oil Slump Boosts Global Markets
Bitcoin edged higher at the start of the week, supported by improving risk appetite in global markets after crude oil prices tumbled sharply amid hopes of easing tensions between the United States and Iran.
The world’s largest cryptocurrency traded near $77,200 during early Monday trading, posting a modest gain while holding above its closely watched 50-day simple moving average near $76,940. Market analysts often view sustained movement above that level as a bullish technical signal, suggesting buyers may be regaining momentum after recent weakness.
Major altcoins also moved slightly higher, though they continued to lag behind Bitcoin in technical strength. XRP and Solana posted gains of more than 0.6%, while Ether added around 0.4%, with all three still trading below their own 50-day averages.
Broader financial markets also turned positive as oil prices extended last week’s decline. West Texas Intermediate crude futures slid more than 5%, dropping close to $91 per barrel after recently trading above $104. The decline came as reports suggested negotiations to reopen the Strait of Hormuz were nearing completion.
The strategic waterway, responsible for a significant portion of global oil shipments before the Iran conflict escalated earlier this year, has remained partially disrupted for months. Reports over the weekend indicated that tanker traffic through the strait had begun improving, although volumes remain below normal levels.
Investor optimism increased further after U.S. Secretary of State Marco Rubio said Washington and Tehran were close to reaching a potential agreement aimed at ending hostilities. According to Rubio, diplomatic efforts remain the preferred path, though alternative measures remain on the table if talks fail.
The improving geopolitical outlook helped fuel gains across Asian stock markets. Japan’s Nikkei jumped nearly 3% in early trading, while India’s Nifty index gained over 1%. Australia’s benchmark ASX 200 also moved higher.
Despite the rebound in crypto prices, analysts continued to warn that institutional demand remains fragile. Spot Bitcoin ETFs have recorded more than $2 billion in net outflows over the past two weeks, raising concerns about the market’s ability to sustain rallies.
Market observers noted that Bitcoin’s resilience will likely depend on whether ETF selling pressure begins to ease in the coming days. While long-term holders and stablecoin liquidity have helped absorb some of the recent selling, persistent redemptions from institutional products could continue weighing on price momentum.
Trading activity on centralized exchanges also remains under scrutiny after more than 18,000 BTC reportedly moved onto exchanges, a signal some traders interpret as potential sell-side pressure building in the market.
For now, traders appear cautiously optimistic, with sentiment improving alongside geopolitical developments, though many remain hesitant to fully embrace a risk-on environment until a formal U.S.-Iran agreement is confirmed.