Bitcoin Surges Above $77K as Oil Prices Plummet

The price of bitcoin has surged above $77,000 on Monday, driven by a 5% drop in oil prices. This development boosted Asian equities and supported crypto sentiment, with other major cryptocurrencies also seeing modest gains.

According to CoinDesk data, the leading cryptocurrency traded near $77,200 at 6:35 UTC, up 0.4% from midnight UTC. This level is just above its widely tracked 50-day simple moving average of around $76,940, which traders and chart analysts closely monitor.

Other major cryptocurrencies, including XRP, Solana (SOL), and Ether (ETH), were also modestly higher, with XRP and SOL rising 0.6% or more. However, all three continue to trade below their respective 50-day moving averages, lagging behind bitcoin on this metric.

The sharp decline in oil prices was driven by reports that a deal to reopen the Strait of Hormuz, a critical chokepoint for global oil flows, is in its final stages. This development has lifted Asian equities, with India's Nifty climbing over 1%, Japan's Nikkei rising nearly 3% in early trade, and Australia's S&P/ASX 200 adding 0.4%.

Analysts remain cautious due to more than $2 billion in outflows from spot ETFs over the past two weeks. However, some experts believe that bitcoin can absorb institutional selling if stablecoin liquidity remains firm and long-term holders stay patient.