Bitcoin recovers to near $84k as falling oil prices offer some support

Bitcoin rebounded slightly on Monday, recovering some of its recent losses as falling oil prices provided some support to risk-driven markets. The world's largest cryptocurrency rose 0.9% to $83,893.2 by 02:06 ET (06:06 GMT). Last week, Bitcoin had declined by around 2%, with outflows from spot U.S. exchange-traded funds adding pressure.

Broader crypto prices also climbed on Monday, mirroring Bitcoin's recovery after a slow start to October. Bitcoin and crypto gains came amid a drop in oil prices on Monday, following U.S. President Donald Trump's unexpected announcement of an "energy ceasefire" between Russia and Ukraine. Although both Russia and Ukraine had not yet confirmed the ceasefire, Trump's announcement generated optimism for improved global oil and fuel supplies.

The U.S. was also perceived to be pressuring Kyiv to accept a ceasefire deal with Russia, raising hopes that Ukraine would eventually accept a peace agreement. Oil prices fell nearly 2% on Monday, although they subsequently regained some ground as risks to Middle Eastern supply and U.S. Gulf Coast production persisted. Despite the drop in oil prices, concerns over persistent inflation and potential interest rate hikes were tempered, contributing to gains in risk-driven markets following a challenging start to October.

Spot Bitcoin ETFs recorded significant outflows in the first week of October, totaling $681 million, marking the worst performance since late June. This outflow activity reflected a sluggish start to October for Bitcoin. However, the crypto has historically performed well in October, a phenomenon known as "uptober." Other major cryptocurrencies also showed gains on Monday, with Ether rising 2.4% to $2,566.45, XRP increasing 1.1%, Solana and Cardano both advancing over 2%, and BNB gaining 0.8%. Among meme coins, Dogecoin rose 2.4%, while $TRUMP climbed 3%.