Bitcoin rebounded early in the day Monday, briefly crossing over $83,000 as falling U.S. Treasury yields and lower oil prices helped risk assets begin the week higher.
The flagship cryptocurrency pared gains later in the day, rising 1.2% to $81,844. Today's price action comes after a losing week that saw bitcoin fall as low as $80,112.
U.S. Treasury yields fell in Asian trade Monday, allowing yields to remain comfortably below recent multidecade highs at the long end of the curve. Oil prices also 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.
But cryptocurrency investors remain on edge, as metrics show that new buyers of bitcoin remain in short supply. Fund traders are not hungry for bitcoin exposure, with last week finishing with bitcoin ETFs having a net outflow of $228.4 million, according to data from Coinglass.
"The average ETF holder remains underwater relative to their estimated $84,358 cost basis," said analysts with Bitfinex in a note published Monday. The firm adds that increased leveraged bets on bitcoin by investors leaves bitcoin open to a new rush of liquidations, which if they materialized would bring the price below the $80,000 mark.
For 2027, many analysts said they expect bitcoin prices to climb back above the $100,000 mark. Such a rebound would likely provide support to gains in the wider crypto market, said Bret Kenwell, an analyst with eToro Group.
"A sustained rebound could help drive broader gains across the crypto space," said Kenwell in a note Monday.
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