Crypto assets traded higher during the US session on Monday, recovering from the heavy overnight losses they had brought to bitcoin. up to almost $65,000.
Bitcoin was trading just below $69,000 at midday, up 2.5% over the past 24 hours, while ether (ETH) regained the $2,000 level, up 4% over the same time period.
Among cryptocurrency-related stocks, stablecoin issuer Circle (CRCL) saw the biggest price increase, up 8%, as global insurance giant Aon said it paid an insurance premium for the first time in stablecoins, including Circle’s USDC. Other cryptocurrency stocks also traded in the green, with Strategy (MSTR) rising 3% after announcing a large $1.28 billion bitcoin acquisition last week. Cryptocurrency exchange Coinbase (COIN) was down modestly on the day.
The cryptocurrency gains came alongside a big rebound in stocks after crude oil reversed much of its spectacular overnight gain, with the Nasdaq swinging from a 2% loss to steady. Rising 30% to $120 a barrel at one point overnight, WTI crude fell back to $95, just 5% ahead on the session.
The initial big gain in oil prices came after a weekend that showed no signs of an immediate end to the war in Iran.
“Bitcoin has shown surprising resilience despite the extreme volatility exhibited in traditional assets,” said David Morrison, senior market analyst at Trade Nation. “The bulls will be encouraged if they can quickly pull back above $70,000 and then hold this level on any subsequent pullbacks.”
“With traditional financial markets under pressure and supply chains threatened by disruptions in the Middle East, digital assets appear to be attracting defensive capital from investors seeking alternatives to oil-sensitive assets,” he said.
Speaking about stocks, Ram Ahluwalia, CEO of wealth management platform Lumida Wealth, said he expects “to see a local bottom sometime today and a rally during the week.”
However, that could be a short-term tactical bounce, he added, as weakness persists and the S&P 500 will struggle to regain all-time highs “in the near term.”
