Bitcoin climbed above $84,000 on Monday as cryptocurrency markets extended their recovery following a US regulatory decision allowing eligible platforms to trade tokenised equities under specified conditions.
The digital asset rose 4.9% to $84,371.90 by 05:30 ET (09:30 GMT), taking its gains over the preceding week to approximately 5%.
The rebound followed a period of volatility in which Bitcoin dropped below $76,000 after the Federal Reserve raised interest rates last week.
Lower oil prices and encouraging developments in US-China trade discussions also contributed to improved sentiment across financial markets.
SEC Grants Five-Year Exemption for Tokenised Stock Trading
The US Securities and Exchange Commission (SEC) announced a temporary five-year exemption on Thursday, permitting qualifying trading venues to facilitate transactions in tokenised US stocks through blockchain-based platforms.
The exemption is subject to conditions intended to maintain investor protections while supporting financial innovation.
The announcement increased expectations that blockchain infrastructure could play a larger role in trading traditional financial assets.
Cryptocurrency-related equities responded with substantial gains on Friday. Coinbase (NASDAQ:COIN) rose 12%, Strategy (NASDAQ:MSTR) advanced 16% and Robinhood (NASDAQ:HOOD) gained 9%.
Among digital assets, Zcash climbed approximately 3% to above $1,500.
NEAR surged around 23% as activity involving Zcash increased on its cross-chain swap service.
The SEC’s decision applies to qualifying venues and does not remove regulatory requirements for tokenised securities generally.
Falling Crude Prices Ease Some Inflation Concerns
The cryptocurrency recovery coincided with gains in Asian stock markets and US equity futures following positive signals from trade negotiations between Washington and Beijing.
Investors were awaiting a meeting between US President Donald Trump and Chinese President Xi Jinping for further indications about the direction of bilateral trade relations.
Meanwhile, Brent crude declined approximately 2% to below $102 per barrel, extending a four-session losing streak.
Expectations of increased oil supply from the Middle East helped ease concerns about energy costs and their potential contribution to inflation.
Nevertheless, higher US Treasury yields and the possibility of further Federal Reserve interest rate increases remain potential headwinds for Bitcoin.
XRP, Ethereum and Dogecoin Join Cryptocurrency Rally
The advance extended across the broader digital asset market, with most major alternative cryptocurrencies trading higher on Monday.
Ethereum increased 5.8% to $2,728.92, while XRP gained 7% to $1.48.
Solana rose 7.3%, Cardano advanced 8.7% and BNB climbed 4.5%.
Dogecoin, among the most widely traded meme cryptocurrencies, recorded a gain of more than 9%.
The market-wide rebound followed the SEC announcement and an improvement in broader risk sentiment. Further movements will depend on regulatory developments, monetary policy expectations and trading demand.
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