Bitcoin Trades Above $77,000 as Oil Drop Boosts Asian Markets and Crypto Sentiment

Bitcoin traded above $77,000 on Monday as a sharp fall in oil prices supported risk assets across global markets, including Asian equities and cryptocurrencies. The move came after oil futures dropped nearly 5% on growing expectations of a possible reopening of the Strait of Hormuz, a key global shipping route.

Bitcoin was last seen near $77,200, slightly up on the day, holding above its 50-day moving average of around $76,940, a level closely watched by traders for short-term market direction. Other major cryptocurrencies showed mixed performance, with XRP and Solana gaining slightly, while Ether remained below its 50-day trend level.

Oil Drop and Geopolitical Developments Drive Sentiment

Oil prices extended losses as reports suggested progress in US-Iran negotiations that could ease tensions in the Strait of Hormuz, which handles more than 20% of global oil flows.

US Secretary of State Marco Rubio said diplomatic talks are ongoing and Washington could pursue other options if a final agreement is not reached.

ETF Outflows Limit Bitcoin Upside

Despite short-term gains, analysts remain cautious due to more than $2 billion in recent outflows from Bitcoin ETFs. Market participants say sustained selling from institutional investors could continue to pressure prices, even if liquidity from stablecoins remains strong.