Bitcoin trades above $77,000 as oil's 5% slide lifts Asian stocks

A sharp slide in oil prices tied to reports of progress toward reopening the Strait of Hormuz lifted Asian stock markets and coincided with Bitcoin trading back above $77,000, supporting positive crypto sentiment.

The move accelerated after weekend reports suggested negotiators were close to a deal to reopen the chokepoint. CoinDesk data showed Bitcoin around $77,200 mid-morning UTC, while West Texas Intermediate futures fell more than 5% to about $91 a barrel; India’s Nifty and Japan’s Nikkei both posted notable early gains. These flows reflect a rapid re-pricing of geopolitical risk that had previously boosted energy prices.

Crypto markets benefited from the improved risk backdrop even as longer-term headwinds remain. CoinDesk noted over $2 billion in spot ETF outflows across the prior two weeks, a dynamic that can sap momentum despite positive headlines; concurrently, the dollar softened on the news, which typically helps dollar-denominated risk assets including cryptocurrencies. Traders are watching exchange flows and ETF net movements for clues on sustainability.

In the broader economic context, reopening the Strait of Hormuz would ease a major supply bottleneck for global oil shipments and remove upward pressure on energy costs that has fed through to inflation expectations. News that the strait could be reopened has repeatedly been enough to trigger rapid oil sell-offs and equity rallies, but uncertainty about timing and implementation keeps volatility elevated.

Analysts say the near-term path for Bitcoin depends on whether ETF outflows abate and whether peace negotiations produce a durable easing of geopolitical risk. BRN’s head of research Timothy Misir told CoinDesk that slowing ETF redemptions would be critical for sustaining rallies; if outflows persist, every uptick may prove fragile. Market participants will likely monitor both macro headlines and institutional fund flows in the coming sessions.