On Friday, the price of Bitcoin rose, extending its gains as US markets opened and investor appetite for risk increased. The largest digital currency has now seen a nearly 3% increase in value over the past 24 hours, continuing its upward trend that began overnight.
It last traded at $78,722, inching closer to the $80,000 mark once again. Earlier in the week, Bitcoin approached this level but was unable to break through it, before buyers intervened again.
The recent move comes as the stock market experiences gains. At the same time, oil prices have fallen following reports that Iran has proposed a new plan to restart negotiations with the US, raising hopes of easing tensions in the short term. Brent crude futures for July decreased by 26 cents, or 0.23%, to $107.74 per barrel.
Although supply concerns persist, with Tehran blocking the Strait of Hormuz and the US Navy halting Iranian crude exports, the combination of easing news and ongoing constraints contributes to the muted reaction in the oil market. Traders appear cautious, weighing the possibility of a deal against the current situation. For Bitcoin, the focus remains on whether it can finally surpass the $80,000 mark, which many consider a crucial breakout level. 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 a significant resistance level... we need a confident push through that level." Fritz believes that once Bitcoin surpasses this level, it could spark momentum, with investors who have purchased more recently potentially returning to profit.
He also notes that if Bitcoin reaches a level above $85,000, the market may start to see the first signs of a reversal.