Bitcoin rebounded above $82,000 on Monday, as falling U.S. Treasury yields and lower oil prices helped risk assets begin the week higher.
The flagship cryptocurrency rose 2.2% to $82,678, bouncing back after a losing week that saw bitcoin fall as low as $80,112.
U.S. Treasury yields fell in Asian trade on Monday, allowing yields to remain comfortably below recent multidecade highs at the long end of the curve.
Meanwhile, oil prices pulled back after Friday's gains as traders weighed a U.S. decision to waive newly imposed sanctions on Russia against persistent Middle East supply risks. December Brent crude futures fell 1.8% to $107.86 a barrel, while December West Texas Intermediate futures dropped 1.7% to $97.37 a barrel.
Lower oil prices and Treasury yields tend to reduce fears of inflation and interest-rate hikes, while providing a sentiment boost to nonyielding assets including cryptocurrencies. The market is pricing just a 12% chance that the Fed will raise rates on Oct. 28, according to LSEG.
"Bitcoin remains vulnerable to shifting investor sentiment, particularly as elevated inflation, restrictive borrowing conditions, and uncertainty surrounding future monetary policy continue to influence demand for risk-sensitive assets," said Naeem Aslam, analyst at digital market research firm Zaye Capital Markets.
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