Bitcoin rebounds above $82,000 as oil retreat lifts risk mood

Bitcoin climbed back above $82,000 on Monday, recovering alongside other risk assets as oil prices fell from recent peaks. The move reversed a downward trend seen last week, when the cryptocurrency dropped approximately 3% during a broader selloff in technology stocks driven by doubts about artificial intelligence spending.

In early Asian trading, the original cryptocurrency rose as much as 2.3% before stabilizing around $82,400 at noon in Singapore. Smaller digital assets also posted gains, with Ether advancing up to 3.7% and Solana increasing by more than 4.6%.

The rebound coincided with a decline in Brent crude, which fell as much as 2% after retreating from a five-month high. This drop followed indications that Middle East oil supplies had remained stable since the US war with Iran began. Equity futures also pointed higher, with the S&P 500 futures gauge up roughly 0.8% and Nasdaq 100 futures rising 1.3%.

Damien Loh, chief investment officer at Ericsenz Capital, described the price movement as a retracement following a significant risk-off week. He noted that the absence of new negative developments was acting as a positive factor for the market. However, Loh cautioned that he does not see immediate drivers for Bitcoin to break new highs and identified downside risk as the primary concern given the current risk environment.

Despite the daily gain, oil prices remain elevated at roughly $107 a barrel, a level higher than most of last week. Institutional interest in Bitcoin has also weakened recently. US-listed spot Bitcoin exchange-traded funds saw $228.6 million in outflows last week, following $681 million in outflows the previous week.

Bitcoin continues to trade within the range established last week, between $80,000 and $85,000.