Crypto assets traded higher during the U.S. session on Monday, rebounding from sharp overnight losses that had brought bitcoin down to nearly $65,000.
Bitcoin was trading just shy of $69,000 at midday up 2.5% over the past 24 hours, while ether (ETH) reclaimed the $2,000 level, ahead 4% over the same time period.
Among crypto-related stocks, stablecoin issuer Circle (CRCL) saw the biggest price jump, up 8% as global insurance giant Aon said it paid an insurance premium for the first time in stablecoins, including in Circle’s USDC. Other crypto stocks traded in the green as well, with Strategy (MSTR) higher by 3% after announcing a large $1.28 billion acquisition of bitcoin last week. Crypto exchange Coinbase (COIN) was modestly lower for the day.
The gains for crypto came alongside a big bounce in stocks after crude oil reversed much of its spectacular overnight gain, the Nasdaq swinging from a 2% loss to flat. Up 30% to $120 per barrel at one point overnight, WTI crude pulled back to $95, ahead just 5% on the session.
The initial large gain in oil prices came after a weekend that showed no sign of an immediate end to the war in Iran.
“Bitcoin has displayed surprising resilience despite the extreme volatility exhibited across traditional assets,” said David Morrison, senior market analyst at Trade Nation. “The bulls will be encouraged if it can quickly push back above $70,000 and then hold this level on any subsequent pullback.”
“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 of stocks, Ram Ahluwalia, CEO of wealth management platform Lumida Wealth, said that he expects “we will see a local bottom sometime today and a rally during the week.”
However, that could be a tactical short-term bounce, he added, as weakness persists and the S&P 500 will struggle to reclaim the record highs “anytime soon.”
