Bitcoin ticked higher on Monday, supported by improved risk sentiment after a sharp decline in oil prices boosted Asian equity markets.
The cryptocurrency was trading around $77,200 at 6:35 UTC, marking a modest 0.4% gain on the day, according to CoinDesk data. This placed bitcoin slightly above its closely followed 50-day simple moving average near $76,940, a level often viewed by traders as a key indicator of bullish momentum when sustained.
Altcoins also saw mild gains, though they continued to lag bitcoin from a technical standpoint. XRP and Solana (SOL) each advanced more than 0.6%, while Ether (ETH) rose about 0.4%. Despite the uptick, all three remained below their respective 50-day averages.
Market sentiment improved as West Texas Intermediate crude futures dropped more than 5% to roughly $91 per barrel, extending losses from last week’s high above $104. The pullback in oil prices fueled gains in Asian equities, with India’s Nifty rising over 1%, Japan’s Nikkei climbing nearly 3%, and Australia’s S&P/ASX 200 adding 0.4% in early trading.
The decline in oil followed reports over the weekend suggesting progress toward reopening the Strait of Hormuz, a critical global energy route that accounted for more than 20% of oil flows before tensions escalated earlier this year. Iran’s IRGC said over 20 tankers had recently passed through the strait, though volumes remain below pre-conflict levels.
U.S. Secretary of State Marco Rubio indicated that negotiations with Iran were advancing, noting that a “solid” proposal was on the table and a potential agreement to end hostilities could be reached as soon as Monday. He added that while diplomatic efforts remain the priority, alternative measures would be considered if talks fail.
Despite the improved backdrop, analysts urged caution, pointing to more than $2 billion in outflows from spot bitcoin ETFs over the past two weeks.
Timothy Misir, head of research at BRN, said ETF flows remain a critical signal. While bitcoin can absorb some institutional selling if stablecoin liquidity holds and long-term investors remain steady, continued outflows could limit the strength of any rally.
India-based exchange CoinSwitch also highlighted the importance of a finalized U.S.-Iran agreement for sustained upside. The platform noted that sentiment has improved on signs of progress, helping bitcoin rebound toward $77,000, but added that traders remain cautious. It also pointed to exchange data showing a net inflow of 18,528 BTC to centralized platforms, indicating potential selling pressure despite the recent recovery.
