During early Asian trading hours on Monday, Bitcoin rose about 1% to around $78,600, marking its third consecutive day of gains. This followed a sharp selloff in US tech stocks last Friday, prompting Asian investors to begin adding back risk assets.
According to data, ZEC (Zcash) led gains among major cryptocurrencies, rising 3% to approach $1,280. Ethereum and BNB both climbed nearly 2%, with Ethereum slightly above $2,300 and BNB around $713. XRP and TRX each gained about 1%, while SOL lagged, trading roughly flat at around $95.
The market opened relatively calmly this week after Binance disclosed last week that it had suffered a $6.3 billion hack. This was the largest asset theft ever recorded at a cryptocurrency exchange and had previously driven cryptocurrency prices lower. Bitcoin briefly fell to around $77,600 late Sunday but was pushed back above $78,500 within hours by buying activity.
Stock markets are also recovering. Last Friday, the Nasdaq 100 index dropped 3.5%, its largest single-day decline since June. The Philadelphia Semiconductor Index, which tracks US-listed chipmakers, plunged 7%. On Monday, both S&P 500 and Nasdaq 100 futures rose at least 0.4%. Major stock indices in South Korea, Hong Kong, and Japan advanced. Brent crude oil prices fell 3% to around $110 per barrel. This followed reports that US President Trump wants to give diplomatic negotiations with Iran more time before considering whether to resume military strikes after Tuesday's midterm elections conclude. Gold prices rose about 1% to around $3,910 per ounce. Last Friday, gold prices had hit their lowest closing level in over a year.
Jeff Mei, Chief Operating Officer of cryptocurrency exchange BTSE, said in an email: "We believe that given the Fed's stance last week, macroeconomic pressures will keep interest rates elevated for the coming months, which will weigh on market liquidity for Bitcoin and other cryptocurrencies." Mei stated: "This week we will be closely watching whether tech stocks rebound or extend last week's decline. A modest bounce could signal that the market has bottomed and may present potential buying opportunities for Bitcoin, which is currently trading below $80,000."
The CLARITY Act aims to establish regulatory rules for the US cryptocurrency market, including clarifying which regulatory bodies are responsible for overseeing different types of tokens. Polling stations across the United States will close progressively on Tuesday evening, meaning election results will begin to emerge during Asian trading hours on Wednesday. Mei added: "Additionally, this week's US midterm elections could have a significant impact on markets. Although Democrats oppose the CLARITY Act, if Democrats win a majority in Congress, it could force an early end to the Iran conflict, thereby reducing oil prices and inflationary pressures, and driving a rebound in stock and cryptocurrency markets."
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