MarketsShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailBitcoin trades above $77,000 as oil's 5% slide pushes Asian equities higher
Oil’s 5% decline, attributed to the potential reopening of the Strait of Hormuz, has buoyed Asian stock markets and enhanced crypto market optimism.
By Omkar Godbole Updated May 25, 2026, 1:43 p.m. Published May 25, 2026, 7:11 a.m. 2 min readMake preferred on
BTC's price. (CoinDesk)Key Highlights:
- Bitcoin is trading around $77.2K, remaining above its 50-day average, while ETH, XRP, and SOL are below theirs.
- The recent 5% drop in oil prices, linked to the potential reopening of the Strait of Hormuz, has positively influenced Asian stock markets and crypto sentiment.
- Despite this, there remains caution as ETF outflows have surpassed $2 billion over the last two weeks.
Bitcoin BTC$76,585.81 saw a slight increase on Monday as falling oil prices contributed to a rise in Asian stock indices.
At 6:35 UTC, the leading cryptocurrency traded near $77,200, marking a 0.4% increase from midnight UTC, according to data from CoinDesk. This price point places bitcoin just above its important 50-day simple moving average, which is approximately $76,940. This level is closely watched by traders and analysts, with sustained upward movements typically interpreted as a bullish signal. Other prominent cryptocurrencies also experienced slight gains.
XRP and Solana (SOL) increased by 0.6% or more, while Ether (ETH) rose by 0.4%. Nevertheless, all three remained below their respective 50-day moving averages, trailing behind bitcoin in this aspect.
Futures contracts for West Texas Intermediate crude oil fell more than 5%, reaching around $91 per barrel, continuing a significant decline from last Wednesday's peak above $104. Asian markets responded positively, with India's Nifty index rising over 1%, Japan's Nikkei gaining nearly 3% in early trading, and Australia’s S&P/ASX 200 climbing 0.4%.
This market activity follows reports from the weekend indicating that negotiations for reopening the Strait of Hormuz—an essential passage that previously accounted for over 20% of global oil traffic before the conflict in Iran began in late February—are nearing completion.
Last week, Iran’s IRGC announced that they had permitted over 20 tankers to pass through the strait, although this figure is still substantially lower than pre-war levels.
U.S. Secretary of State Marco Rubio commented that American and Iranian negotiators have a "pretty solid thing on the table" and that an agreement to conclude the conflict might be reached by Monday. He stated that the U.S. is prepared to explore all diplomatic avenues but will consider alternative actions if a satisfactory agreement cannot be achieved.
Despite the optimistic market movements, analysts are maintaining a cautious stance regarding bitcoin, pointing to over $2 billion in outflows from spot ETFs in the last fortnight.
Timothy Misir, head of research at BRN, noted in an email, "For crypto, the critical indicator is whether ETF outflows begin to slow. Bitcoin could handle some institutional selling if stablecoin liquidity remains strong and long-term holders remain patient. Ongoing ETF redemptions would complicate any rallies."
The CoinSwitch exchange, registered with India’s FIU, emphasized that a finalized U.S.-Iran peace agreement would be essential for sustained price increases.
"Market sentiment has improved following reports of advancements in U.S.–Iran negotiations, including a potential reopening of the Strait of Hormuz, which has helped BTC bounce back toward $77K. However, as the deal is still pending, traders are not fully embracing risk. Exchange data also indicates a net movement of 18,528 BTC into centralized exchanges, suggesting possible sell-side pressure," the exchange stated in an email.
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