Cryptocurrencies extended their gains on Tuesday as concerns about a possible oil supply shock eased and risk sentiment improved across global markets.
Sentiment changed after the International Energy Agency (IEA) announced it would convene an extraordinary meeting of member countries to consider the release of emergency oil reserves.
Bitcoin $BTC$70,816.15 It rose above $71,500 for the first time since Thursday and has since returned to its current $71,300 level, up 3.2% in the past 24 hours. The broader market CoinDesk 20 index rose by a similar amount. $XRP ($XRP), doge$0.09453, Sui$0.9945 And Hyperliquid’s native token (HYPE) is the top gainer among major crypto assets.
WTI crude oil fell further on the news, dropping to $82 after soaring to nearly $120 over the weekend. Meanwhile, the S&P 500 and the tech-heavy Nasdaq 100 were up about 0.5% as of midday.
Most crypto stocks reflected this rise. Stablecoin issuer Circle (CRCL) rose another 6%, up nearly 100% in two weeks, while digital asset infrastructure company BitGo (BTGO) rose more than 8% and blockchain company Figure (FIGR) rose 12%.
Since then nigel farage Announced to join UK Bitcoin treasury company Stack $BTC (STAK) Its stock price soared more than 200% on Monday.
Decoupling Bitcoin from Software
Bitcoin appears to be losing its correlation with the Software Stocks ETF (IGV), as BlackRock’s IBIT is up about 3% over the past 24 hours, while IGV is down more than 2%.
However, over the past five days, IGV is up about 1.5% while IBIT is down about 2%, suggesting that IBIT may still have some catching up to do before it reestablishes its correlation with software stocks.
Weakening correlations may also be worth noting, which could indicate that Bitcoin is starting to trade more independently from software and tech stocks, potentially making it a more uncorrelated asset during periods of macro uncertainty. Despite still outperforming gold and US stocks since the war began.
“Cautiously optimistic” $BTC
James Harris, CEO of crypto yield platform Tesseract Group, said Bitcoin’s recent price movement has been relatively resilient despite continued macro turmoil.
After briefly testing the low $60,000 area, $BTC He said the recovery came even as the broader risk market struggled with geopolitical uncertainty. Meanwhile, ETF inflows remain broadly supportive, with significant deleveraging earlier in the month helping to clear out over-positioning in derivatives markets.
Harris said the combination of weakening sentiment, weakening leverage, and support near $66,000 suggests that Bitcoin may be in the process of bottoming out. However, downside risks still exist as the cryptocurrency market remains fragile.
“If support in the mid-$60,000 region fails, further declines can easily be expected, but for now we remain cautiously optimistic.” $BTC” he said.
