Cryptocurrencies advanced during Monday’s U.S. trading session, bouncing back from steep overnight losses that briefly pushed Bitcoin toward the $65,000 level. The recovery came as oil prices sharply retreated from earlier highs, easing pressure on broader risk markets.
By midday, Bitcoin was trading just below $69,000, up about 2.5% over the previous 24 hours. Ethereum also strengthened, reclaiming the $2,000 level and gaining roughly 4% during the same period.
Crypto-related equities mostly followed the upward trend. Shares of Circle Internet Financial, issuer of the USD Coin stablecoin, surged about 8% after global insurance broker Aon disclosed that it had paid an insurance premium using stablecoins for the first time, including USD Coin.
Other firms tied to the digital asset sector also moved higher. MicroStrategy gained around 3% after revealing last week that it had purchased $1.28 billion worth of Bitcoin. Meanwhile, crypto exchange Coinbase was modestly lower during the session.
The rebound in cryptocurrencies came alongside a turnaround in equities as energy prices gave back much of their earlier gains. The Nasdaq Composite shifted from an early decline of roughly 2% to trade near flat levels.
Earlier in the session, West Texas Intermediate crude oil had surged close to 30%, briefly touching $120 per barrel overnight. Prices later retreated to about $95, leaving crude still up roughly 5% for the day.
The initial spike in oil followed a tense weekend marked by ongoing conflict involving Iran, with no clear signs of an immediate resolution. The situation raised concerns about potential disruptions to global energy supply chains.
Despite the volatility in traditional markets, analysts say Bitcoin has shown notable resilience.
“Bitcoin has displayed surprising resilience despite the extreme volatility across traditional assets,” said David Morrison, senior market analyst at Trade Nation. He added that investors would likely take encouragement if the cryptocurrency quickly regains the $70,000 mark and maintains that level during any pullback.
Morrison noted that ongoing pressure in traditional financial markets and the risk of supply chain disruptions in the Middle East could push investors toward digital assets as an alternative to investments sensitive to oil prices.
Looking at the broader market, Ram Ahluwalia, chief executive of Lumida Wealth, said stocks could soon reach a near-term bottom.
“We may see a local bottom sometime today and a rally during the week,” Ahluwalia said. Still, he cautioned that any rebound might be short-lived, as lingering weakness could prevent the S&P 500 from returning to its record highs in the near future.
