Crypto assets traded higher during the US session on Monday, rebounding from the sharp overnight losses that brought bitcoin. up to almost $65,000.
Bitcoin was trading at midday at just under $69,000, up 2.5% over the past 24 hours, while Ether (ETH) reclaimed the $2,000 level, up 4% over the same period.
Among crypto-related stocks, stablecoin issuer Circle (CRCL) saw the biggest price gain, up 8%, as global insurance giant Aon reported paying an insurance premium for the first time in stablecoins, including in Circle’s USDC. Other crypto stocks also traded in the green, with Strategy (MSTR) up 3% after announcing a major $1.28 billion Bitcoin acquisition last week. Crypto exchange Coinbase (COIN) was slightly lower for the day.
Crypto’s gains were accompanied by a strong rebound in stocks after crude oil reversed much of its dramatic overnight gain, with the Nasdaq moving from a 2% loss to flat. Up 30% to $120 a barrel at one point overnight, WTI crude returned to $95, ahead of the session by just 5%.
The first sharp rise in oil prices came after a weekend that showed no signs of an immediate end to the war in Iran.
“Bitcoin has demonstrated surprising resilience despite the extreme volatility of traditional assets,” said David Morrison, senior market analyst at Trade Nation. “The bulls will be encouraged if they can quickly get back above $70,000 and then maintain that level on any subsequent pullback.”
“As traditional financial markets come under pressure and supply chains are threatened by disruptions in the Middle East, digital assets appear to be attracting defensive capital from investors looking for alternatives to oil-sensitive assets,” he said.
Speaking about stocks, Ram Ahluwalia, CEO of wealth management platform Lumida Wealth, said he expects “we will see a local bottom today and a rally over the course of the week.”
However, this could be a tactical rebound in the short term, he added, as weakness persists and the S&P 500 will struggle to return to record highs “in the near future.”
