Cryptocurrencies moved higher during Monday’s U.S. trading session, recovering from sharp overnight losses that had briefly pushed Bitcoin down toward $65,000. The rebound came as oil prices retreated significantly from earlier spikes, easing pressure on global risk assets.
By midday, Bitcoin was trading just under $69,000, up roughly 2.5% over the past 24 hours. Ethereum also bounced back, climbing above the $2,000 mark and gaining around 4% during the same period.
Several crypto-linked stocks participated in the rally. Shares of Circle Internet Financial, the issuer of the USD Coin stablecoin, jumped about 8% after global insurance company Aon revealed it had paid an insurance premium using stablecoins for the first time, including USD Coin.
Other companies tied to the digital asset sector also traded higher. MicroStrategy rose roughly 3% after announcing a $1.28 billion purchase of Bitcoin last week. Meanwhile, shares of crypto exchange Coinbase were slightly lower on the day.
The gains in digital assets coincided with a sharp turnaround in equity markets after oil prices reversed much of their overnight surge. The Nasdaq Composite recovered from an early loss of about 2% to trade roughly flat during the session.
Earlier, West Texas Intermediate crude oil had surged nearly 30% to about $120 per barrel overnight before retreating to around $95, leaving it up roughly 5% on the day.
The spike in oil prices followed a weekend marked by heightened geopolitical tensions and little indication of a quick resolution to the conflict involving Iran, raising concerns about potential disruptions to global energy supplies.
Despite the volatility in traditional markets, analysts say Bitcoin has held up relatively well.
“Bitcoin has displayed surprising resilience despite the extreme volatility across traditional assets,” said David Morrison, senior market analyst at Trade Nation. He noted that bullish momentum could strengthen if the cryptocurrency manages to reclaim the $70,000 level and hold it on any pullback.
Morrison added that with financial markets under pressure and supply chains potentially threatened by disruptions in the Middle East, some investors may be turning to digital assets as an alternative to investments tied closely to oil prices.
On the equities side, Ram Ahluwalia, CEO of Lumida Wealth, said markets could soon find a near-term bottom.
“We may see a local bottom sometime today followed by a rally later this week,” Ahluwalia said. However, he cautioned that any rebound could prove temporary, as broader market weakness persists and the S&P 500 may struggle to revisit its record highs in the near future.
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