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

In a positive shift for the cryptocurrency market, Bitcoin has reclaimed a price above US$82,000, rebounding with the broader risk sentiment as oil prices have fallen. The digital currency surged by 2.3% in early Asian trading, reaching around US$82,400 in Singapore. Other digital tokens, including Ether and Solana, also experienced gains, with Ether rising by 3.7% and Solana up by more than 4.6%.

The resurgence in risk assets can be attributed to oil's retreat from a five-month high, following indications that Middle Eastern supplies have remained stable due to the recent U.S.-Iran conflict. Brent crude prices dropped by up to 2%, while S&P 500 futures increased by around 0.8%, and Nasdaq 100 futures rose by 1.3%.

Analysts attribute the Bitcoin rebound to the "improving macro conditions," with Damien Loh, the chief investment officer at Ericsenz Capital, describing it as a "retracement after a big risk-off week." However, he added that "no news is good news" and that there are no immediate drivers for Bitcoin to reach new highs. Instead, he expressed caution, stating that the downside risk remains due to the overall risk environment.

Oil prices have remained elevated at approximately US$107 per barrel, a level not seen in the previous week. Additionally, institutional demand for Bitcoin has waned for two consecutive weeks, with US-listed spot Bitcoin exchange-traded funds (ETFs) reporting outflows of US$228.6 million in the last week, compared to US$681 million in the preceding week. Despite this, Bitcoin still remains within last week's trading range of US$80,000 to US$85,000.