Bitcoin Rebounds Toward $79K as Crypto Market Recovers From $6.3B Hack

Zcash led gains among major cryptocurrencies, while oil prices declined following reports that U.S. President Donald Trump wants to allow more time for diplomatic discussions with Iran. Investors are also preparing for Tuesday’s U.S. midterm elections, which could influence broader market sentiment.

Bitcoin advanced approximately 1% to around $78,600 during Monday’s Asian morning session, extending its winning streak to three consecutive days. The recovery came as Asian investors returned to riskier assets following Friday’s sharp selloff in U.S. technology stocks.

ZEC outperformed most leading cryptocurrencies, gaining 3% to approach $1,280. Ether and BNB each climbed nearly 2%, trading slightly above $2,300 and around $713, respectively. XRP and TRX posted gains of approximately 1%, while SOL underperformed, remaining largely unchanged near $95, according to CoinDesk market data.

The market began the week on a more positive note after last week’s announcement of a $6.3 billion Binance hack, which marked the largest cryptocurrency exchange theft on record and triggered widespread selling. Bitcoin briefly declined to approximately $77,600 late Sunday before buyers stepped in, pushing its price back above $78,500 within a few hours.

Traditional financial markets also showed signs of recovery. The Nasdaq 100 dropped 3.5% on Friday, marking its steepest single-day decline since June. Meanwhile, the Philadelphia Semiconductor Index, which follows U.S.-listed chip companies, suffered a 7% loss. However, futures tracking both the S&P 500 and Nasdaq 100 gained at least 0.4% on Monday.

Asian equity markets also moved higher, with major benchmarks advancing in South Korea, Hong Kong, and Japan. Chinese stocks gained as well following reports that financial regulators planned to meet with banks and brokerage firms on Monday to discuss measures aimed at supporting the stock market.

Brent crude prices dropped approximately 3% to around $110 per barrel after reports indicated that Trump wants to extend diplomatic efforts with Iran before considering a possible resumption of military strikes following Tuesday’s midterm elections. Gold also recovered around 1%, reaching approximately $3,910 per ounce after Friday’s close marked its weakest level in more than a year.

Jeff Mei, chief operating officer at cryptocurrency exchange BTSE, told CoinDesk that the Federal Reserve’s recent commentary suggests macroeconomic pressures could keep interest rates elevated. According to Mei, tighter financial conditions may continue restricting liquidity across Bitcoin and other cryptocurrency markets over the coming months.

He also highlighted the performance of technology stocks as an important factor to monitor this week. Mei explained that a recovery in tech shares could indicate that markets have already established a bottom, potentially creating an attractive buying opportunity for Bitcoin, which remains below the $80,000 threshold.

Another important development for the cryptocurrency industry is the proposed CLARITY Act. The legislation aims to establish a regulatory framework for U.S. crypto markets, including defining the responsibilities of different regulatory agencies and determining which authority oversees particular digital assets.

Meanwhile, voting in the U.S. midterm elections will conclude on Tuesday night, with initial results expected to emerge during Wednesday’s Asian trading session.

Mei also noted that the election outcome could have broader implications for financial markets. He suggested that a Democratic majority in Congress could influence the progress of the CLARITY Act and potentially increase pressure to bring the Iran conflict to an earlier conclusion. A reduction in geopolitical tensions could push oil prices lower, ease inflation concerns, and create more favorable conditions for stocks and cryptocurrencies.

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