Bitcoin prices climbed on Monday, ending a two-week losing streak as investor confidence improved across Wall Street. However, rising US Treasury yields and persistently elevated oil prices limited the cryptocurrency’s recovery.
The world’s largest cryptocurrency gained 1% to trade at $82,003.70 by 17:52 ET (21:52 GMT), following two consecutive weeks of losses of approximately 2%.
Despite the modest rebound, uncertainty surrounding global financial markets, inflation and geopolitical tensions continued to influence cryptocurrency sentiment.
Bitcoin Price Rebounds as Wall Street Recovers
Bitcoin benefited from renewed demand for riskier assets as US stock markets recovered from their recent sell-off.
Wall Street had suffered its weakest weekly performance since late June, largely driven by concerns surrounding artificial intelligence companies and technology valuations.
Investors became increasingly cautious about competition from Chinese AI developers and the substantial debt financing supporting the sector’s expansion.
Semiconductor stocks experienced particularly heavy selling pressure. The Philadelphia Semiconductor Index recorded eight consecutive declining sessions on Friday, marking its longest losing streak since October 2008.
However, market sentiment improved on Monday as technology stocks regained momentum.
The NASDAQ Composite advanced more than 1%, supporting a broader recovery in risk appetite and helping Bitcoin regain some lost ground.
Rising US Treasury Yields Limit Bitcoin Gains
Despite the improvement in equity markets, continued selling in government bonds weighed on cryptocurrency sentiment.
US Treasury yields moved higher as bond prices declined, increasing uncertainty across financial markets.
The benchmark 10-year Treasury yield rose by 4.3 basis points to 5.143%, while the more interest-rate-sensitive two-year yield climbed 4.2 basis points to 4.778%.
Higher government bond yields can reduce the appeal of speculative investments, including cryptocurrencies, as investors reassess risk and potential returns.
The bond market weakness also followed renewed turbulence in European financial markets.
France experienced widespread demonstrations, violent clashes and looting over the weekend, intensifying concerns about political stability and the country’s deteriorating fiscal position.
The unrest reflected growing public dissatisfaction with rising living costs and inadequate public services.
These developments added to investor uncertainty at a time when France was already facing significant budgetary challenges.
Elevated Oil Prices Add Pressure to Cryptocurrency Markets
Oil prices also played an important role in limiting Bitcoin’s recovery.
Brent crude futures, the international oil benchmark, settled 0.1% lower at $109.16 per barrel after recovering from larger losses earlier in the session.
Crude prices initially declined following US President Donald Trump’s decision to suspend several sanctions targeting Russia.
The executive order came shortly before the restrictions were scheduled to take effect.
Trump also waived proposed tariffs on countries importing Russian oil, following a separate diesel import agreement between Washington and Moscow.
The administration described the measures as serving US national interests.
However, renewed geopolitical tensions in the Middle East subsequently complicated the outlook for energy markets.
Middle East Tensions Raise Fresh Oil Supply Concerns
Iran-backed Houthi forces announced military operations targeting several locations in Saudi Arabia over the preceding 48 hours.
The group described the attacks as retaliation for strikes by the Saudi-led coalition against civilian facilities in Yemen’s capital, Sanaa.
According to the Houthi announcement, the operations targeted Saudi Aramco facilities in Yanbu, the Shaybah oil field and several airports, including King Khalid International Airport and Abha International Airport.
The claims added to concerns about potential disruptions to regional energy infrastructure and global oil supplies.
Persistently high crude prices could complicate efforts to contain inflation, potentially influencing expectations for US monetary policy.
For Bitcoin investors, elevated energy prices and uncertainty surrounding interest rates remain important factors affecting broader market risk sentiment.
Strategy Expands Its Bitcoin Holdings
Meanwhile, corporate Bitcoin accumulation continued despite recent market volatility.
Strategy, one of the largest corporate holders of Bitcoin, announced that it purchased an additional 267 BTC between October 12 and October 18.
According to a regulatory filing, the company acquired the cryptocurrency at an average price of approximately $82,900 per Bitcoin.
Following the purchase, Strategy’s total holdings increased to 848,517 BTC as of October 18.
The company reported an aggregate acquisition cost of approximately $64.02 billion, representing an average purchase price of $75,446 per Bitcoin.
The latest transaction reflects Strategy’s continued commitment to expanding its Bitcoin treasury holdings.
Strive Adds More Than 1,200 Bitcoin to Its Treasury
Strive also increased its cryptocurrency reserves during the same period.
The company, described as the fourth-largest publicly traded corporate Bitcoin holder, purchased an additional 1,223 BTC between October 14 and October 16.
According to its regulatory filing, the acquisitions raised Strive’s total Bitcoin holdings to 36,818 BTC.
The purchases demonstrate continued corporate interest in Bitcoin as a treasury asset, even as cryptocurrency markets face uncertainty from global economic developments.
Ethereum, XRP and Solana Follow Bitcoin Higher
The broader cryptocurrency market also recorded gains on Monday, with several major altcoins benefiting from the improvement in investor sentiment.
However, most digital assets remained within trading ranges established over the preceding month, suggesting that the recovery had yet to develop into a broader breakout.
Ethereum, the second-largest cryptocurrency by market capitalisation, advanced 1.3% to $2,401.87.
XRP gained 2.1%, while Cardano recorded a more modest increase of 0.6%.
BNB climbed 2.3%, and Solana outperformed several major cryptocurrencies with a 2.5% increase.
Memecoins also participated in the recovery.
Official Trump ($TRUMP) rose 1.3%, while Dogecoin advanced 2.3%.
Bitcoin Outlook: Can the Recovery Continue?
Bitcoin’s latest recovery suggests that improving Wall Street sentiment continues to provide support for cryptocurrency prices.
Nevertheless, several macroeconomic risks could restrict further gains.
Rising US Treasury yields, elevated oil prices and geopolitical uncertainty may continue to influence investor demand for riskier assets.
Meanwhile, renewed corporate Bitcoin purchases provide evidence of continued institutional interest, even during periods of market weakness.
The next significant move in Bitcoin prices could depend on whether the recovery in technology stocks continues and whether pressure from bond and energy markets begins to ease.
For now, Bitcoin has regained some momentum, but the broader macroeconomic environment remains an important obstacle to a more sustained rally.
