Bitcoin rose above $84,000 on Monday, extending its recovery as a US regulatory decision concerning tokenised equities supported sentiment across cryptocurrency markets. Lower oil prices and developments in US-China trade discussions also contributed to a more positive backdrop for risk assets.
The world’s largest cryptocurrency was up 4.9% at $84,371.90 by 05:30 ET (09:30 GMT), bringing its gains over the previous week to approximately 5%.
Bitcoin had fallen below $76,000 following the Federal Reserve’s interest rate increase the previous week before recovering over the weekend.
SEC Decision Encourages Interest in Tokenised Equities
The US Securities and Exchange Commission (SEC) granted a temporary five-year exemption on Thursday, allowing qualifying trading venues to facilitate transactions in tokenised US equities through blockchain-based platforms, subject to specified conditions.
The regulator said the measure was intended to encourage innovation while maintaining investor protections.
The decision raised expectations that conventional financial assets could become more closely integrated with blockchain infrastructure, supporting cryptocurrency-related stocks and several major digital assets.
On Friday, Coinbase (NASDAQ:COIN) shares advanced 12%, Strategy (NASDAQ:MSTR) gained 16% and Robinhood (NASDAQ:HOOD) rose 9%.
Zcash increased approximately 3% to above $1,500, while NEAR surged around 23% amid higher activity involving Zcash on its cross-chain swap service.
The exemption represents a regulatory development for eligible trading venues rather than unrestricted authorisation for all tokenised stock trading.
Lower Oil Prices and Trade Developments Support Sentiment
Broader financial markets also strengthened as Asian equities advanced and US stock futures moved higher following positive signals from US-China trade discussions.
Investors were monitoring developments ahead of a meeting between US President Donald Trump and Chinese President Xi Jinping.
Energy prices provided additional support to market sentiment.
Brent crude declined approximately 2% to below $102 a barrel, extending its losses to a fourth consecutive session as expectations of increased Middle Eastern supply eased some concerns about inflation and energy costs.
Lower energy prices could reduce certain inflationary pressures, although the outlook for US monetary policy remains a potential constraint on cryptocurrency markets.
Higher US Treasury yields and expectations of further Federal Reserve interest rate increases could continue to weigh on Bitcoin and other speculative assets.
Ethereum, XRP and Other Cryptocurrencies Advance
Most major alternative cryptocurrencies recorded gains on Monday, broadly following Bitcoin’s recovery.
Ethereum, the second-largest cryptocurrency by market value, increased 5.8% to $2,728.92.
XRP rose 7% to $1.48, while Solana gained 7.3% and Cardano advanced 8.7%.
BNB climbed 4.5%.
Among meme cryptocurrencies, Dogecoin recorded an increase of more than 9%.
The gains reflected a broader recovery across digital asset markets, although the sustainability of the advance remains dependent on regulatory developments, macroeconomic conditions and investor demand.