Zcash emerged as the strongest performer among leading cryptocurrencies, while crude oil prices declined after reports suggested that Donald Trump wants to extend diplomatic negotiations with Iran. Investors are also turning their attention to Tuesday’s U.S. midterm elections, which could influence sentiment across global financial markets.
Bitcoin gained around 1% to trade near $78,600 during Monday’s Asian session, extending its recovery for a third consecutive day. The advance came as investors in the region showed renewed interest in risk assets following Friday’s steep losses across U.S. technology stocks.
ZEC led the cryptocurrency market with a 3% increase, approaching $1,280. Ether and BNB followed with gains of nearly 2%, trading above $2,300 and around $713, respectively. XRP and TRX advanced approximately 1%, while SOL remained relatively unchanged near $95, based on CoinDesk data.
The recovery offered some relief after last week’s turmoil surrounding Binance’s disclosure of a $6.3 billion hack. The unprecedented exchange theft triggered widespread selling pressure across digital assets. Bitcoin briefly retreated to approximately $77,600 late Sunday before recovering above $78,500 within several hours.
Traditional markets also attempted to regain lost ground following Friday’s technology-led selloff. The Nasdaq 100 plunged 3.5%, recording its worst daily performance since June, while the Philadelphia Semiconductor Index dropped 7%. By Monday, futures tracking the S&P 500 and Nasdaq 100 had turned positive, gaining at least 0.4%.
Asian equities joined the recovery, with markets in South Korea, Hong Kong, and Japan posting gains. Chinese shares also moved higher following reports that regulators planned discussions with banks and brokerage firms to explore ways to stabilize and support the market.
Oil prices faced downward pressure after reports indicated that Trump wants to give diplomatic efforts with Iran more time before potentially restarting military strikes following Tuesday’s midterm elections. Brent crude declined approximately 3% to $110 per barrel. Gold, meanwhile, recovered around 1% to nearly $3,910 per ounce after Friday’s closing price marked its weakest level in more than a year.
Jeff Mei, chief operating officer at cryptocurrency exchange BTSE, said the Federal Reserve’s recent comments point toward continued macroeconomic pressure. He warned that elevated interest rates could constrain liquidity across Bitcoin and the broader cryptocurrency market over the next several months.
Mei also emphasized the importance of technology stocks’ performance in determining the direction of risk assets this week. According to him, a modest recovery in technology shares could indicate that the recent correction has reached a bottom, potentially creating an opportunity to purchase Bitcoin while it remains below $80,000.
The proposed CLARITY Act is another development attracting attention from crypto investors. The legislation is designed to establish a clearer regulatory framework for digital assets in the United States, outlining the responsibilities of different agencies and determining which authorities will oversee individual cryptocurrencies.
Meanwhile, U.S. midterm voting concludes on Tuesday evening, with early election results expected to reach markets during Wednesday’s Asian trading hours.
Mei further suggested that the election outcome could influence the direction of both cryptocurrency regulation and geopolitical tensions. A Democratic victory resulting in a congressional majority could complicate the passage of the CLARITY Act while potentially increasing pressure for an earlier resolution to the Iran conflict.
Lower geopolitical tensions could push oil prices downward and reduce inflation concerns, potentially supporting a broader recovery in equities and cryptocurrency markets. Investors will therefore be watching both the election results and developments in the technology sector for clues about Bitcoin’s next major move.
