Bitcoin Rebound from Asian time lows against a backdrop of lower oil price supporting risk preference

Bitcoin price rebounds above $86,000, oil's fall is the latest positive factor

Bitcoin ( BTC ) is currently priced at $86,030.61 and continues to build momentum for further increases. The continued decline in oil prices is adding to the multiple benefits that support this cryptocurrency .

Price breaks May high, market sentiment warms up

The largest cryptocurrency recently traded around $86,000 after rebounding from a low of about $85,000 during Asian trading hours. On Monday, the price clearly stood at its May high and further consolidated the bullish trend.

Nearly $1 billion flowed into Bitcoin ETF

Cash flows of nearly $1 billion on Monday attracted the largest single-day net inflow since October last year. The continued influx of institutional funds is seen as a major driving force behind this round.

Lower oil prices ease inflationary pressures

WTI crude futures fell more than 2%, to $90 a barrel, down from the recent high of $106. The news that Iran said it would reopen the Strait of Hormuz within seven days if its blockade was lifted prompted oil prices to fall.

Lower oil prices will help ease inflationary pressures and may also weaken the Fed's rationale for continuing to raise interest rates in coming months, creating a more accommodative environment for risky assets.

Risk preference supported by multiple benefits resonance

Alex Kuptsikevich, chief market analyst at FxPro, said in an email comment: "The crypto markets are rallying against the backdrop of the Nasdaq bull run. The decline in oil prices and US bond yields, rising global equity markets as well as optimistic expectations for U.S.-China negotiations together support risk preferences".

At present, the macroeconomic environment and financials are looking good. The short-term trend is strongly supported by Bitcoin , but it will depend on further confirmation of macro data to see if there can be a sustained upturn in future.