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

Bitcoin has reclaimed a price above $82,000 on Monday, marking a reversal of last week's decline. This upward trend is attributed to improving macro conditions and a retreat in oil prices, which have lifted risk sentiment. The cryptocurrency surged as much as 2.3% in early Asian trading, reaching an intraday high of $82,400 in Singapore.

Other smaller tokens also witnessed gains, with Ether up by 3.7% and Solana rising over 4.6%. Cryptocurrencies have become part of a tentative recovery in risk appetite, buoyed by the decline in oil prices from a five-month high. Brent crude dropped by up to 2%, while S&P 500 futures rose by approximately 0.8%, and Nasdaq 100 futures increased by 1.3%.

The positive macro conditions helped Bitcoin reverse its last week's downturn, when it fell about 3% alongside a technology-led stock sell-off due to concerns about spending on artificial intelligence. Analyst Damien Loh from Ericsenz Capital termed today's move as a "retracement after a big risk-off week," suggesting that no immediate drivers exist for Bitcoin to surpass new highs.

He also warned of potential downside risks due to the overall risk environment. Presently, oil prices are hovering around $107 a barrel, a level higher than most of last week's prices. Moreover, institutional demand for Bitcoin has been dwindling for two consecutive weeks, with spot Bitcoin exchange-traded funds recording $228.6 million in outflows last week, following $681 million outflows the previous week. Bitcoin remains within last week's trading range of $80,000 to $85,000.