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 over the past 24 hours, continuing its climb that started overnight. It was last trading 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, pulling back before buyers stepped in again. The latest move comes as equities also saw gains, opening higher in the US. At the same time, oil prices fell after reports emerged that Iran had sent a new proposal aimed at restarting negotiations with the US, raising hopes that tensions could ease in the near term. Brent crude futures for July were down 26 cents, or 0.23%, at $107.74 a barrel.
Despite the easing headlines, supply concerns have not disappeared, as Tehran continues to block the Strait of Hormuz, a key shipping route, while the US Navy is stopping exports of Iranian crude. This mix of easing headlines and ongoing constraints explains the muted reaction in oil, with traders appearing cautious and weighing the chance of a deal against the reality on the ground. For Bitcoin, the focus remains on whether it can finally break through the $80,000 level, which many see as a key breakout point.
A push above this level could draw in more buyers who have been waiting on the sidelines. According to 21shares chief market strategist Adrian Fritz, 'I think $80,000 is quite a resistance level... we need a confident push through that level.
Once we're above that, it could spark some momentum... people are back in profit, especially those who invested more recently.' Fritz also stated that if Bitcoin reaches a level above $85,000, the market could start to see the first signs of a reversal.