Bitcoin reclaims $65,000 as oil prices slide, Ether outperforms

Bitcoin charges past $65,000

Bitcoin surged past the $65,000 mark on Monday, reclaiming a level not seen in weeks. The rally came as oil prices tumbled, easing inflationary fears that had weighed on risk assets. Data from CoinDesk showed the world's largest cryptocurrency hit $65,420 in early trading before settling near $65,100.

Market participants pointed to the slide in crude oil as a major catalyst. Brent crude fell over 3% on the day, touching its lowest point since June. Lower energy costs reduce input prices across the economy, which often boosts appetite for speculative investments like cryptocurrencies.

Ether leads the pack

Ether outperformed Bitcoin, climbing more than 5% to top $3,500. The second-largest digital asset by market capitalisation has been gaining ground relative to BTC in recent sessions. Traders cited growing interest in Ethereum-based decentralised finance applications and upcoming network upgrades as supporting factors.

Altcoins broadly followed the upward trend. Solana, Cardano and XRP all posted gains ranging from 3% to 6%. The total cryptocurrency market capitalisation added roughly $60 billion, pushing back above $2.4 trillion.

Oil slide shifts sentiment

The drop in oil prices came after reports of higher-than-expected inventories and weaker demand signals from major economies. For crypto investors, declining energy costs lower the profitability threshold for Bitcoin mining and reduce one source of inflationary pressure.

Some analysts argued that the correlation between Bitcoin and oil had inverted in recent months. While both assets fell together earlier this year, Bitcoin now appears to be benefiting from the same demand concerns that are hurting crude. Lower oil prices effectively act as a tax cut for consumers and businesses, freeing up capital that can flow into digital assets.

Regulatory developments also remained in focus. Indian authorities have not issued any new statements on cryptocurrency policy since the last parliamentary session, but market watchers expect the government to release a consultation paper on digital asset regulation later this year. Global regulators, meanwhile, continued to signal a cautious but not hostile stance toward crypto markets.

What to watch: Traders will be watching whether Bitcoin can hold above $65,000 in the coming sessions. A sustained break could open the door to the $70,000 resistance zone. On the downside, a failure to maintain current levels might trigger profit-taking. The direction of oil prices and any fresh regulatory announcements from major economies are likely to determine the next move.