On Friday, the price of Bitcoin rose, building on gains as US markets opened and investor appetite for risk increased. The largest digital currency has now gained almost 3% in the last 24 hours, extending its upward trend that started overnight.
It last traded at $78,722, inching closer to the $80,000 threshold once more. Earlier in the week, Bitcoin approached this level but was unable to break through, pulling back before buyers stepped in again. The latest movement coincides with rising equity markets in the US.
At the same time, oil prices dropped following reports that Iran submitted a new proposal to restart negotiations with the US, raising hopes that tensions may ease in the near term. Brent crude futures for July fell by 26 cents, or 0.23%, to $107.74 per barrel.
Although supply concerns persist, with Tehran blocking the Strait of Hormuz, a key shipping route, and the US Navy halting Iranian crude exports, the mix of easing headlines and ongoing constraints has resulted in a muted reaction in oil. Traders appear cautious, weighing the possibility of a deal against the current situation on the ground. For Bitcoin, the focus remains on whether it can finally surpass $80,000, a level considered by many to be a crucial breakout point.
A push above this level could attract more buyers who have been waiting on the sidelines. According to 21shares Chief Market Strategist Adrian Fritz, '$80,000 is quite a resistance level... we need a confident push through that level.' Fritz added, 'Once we're above that, it could spark some momentum...
people are back in profit, especially those who invested more recently.' He also stated that if Bitcoin reaches a level above $85,000, the market may start to see the first signs of a reversal.