Bitcoin rebounded above $77,000 on Monday, after falling to nearly $74,000 over the weekend, buoyed by optimism over a potential peace deal between the United States and Iran, as well as growing institutional adoption of cryptocurrency derivatives.
The world's largest cryptocurrency last traded at $77,444.00, up 0.6%, by 9:48 AM.
Bitcoin had recovered after falling to a low of $74,346.50 on Sunday.
Traders weigh the prospects for a peace deal with Iran
Global financial markets stabilized after talks aimed at ending the nearly three-month-long Middle East conflict showed tangible progress, easing fears of a prolonged disruption to oil shipments through the Strait of Hormuz.
Global stock markets rose, while oil prices continued to decline in hopes that shipping traffic would return to normal if an agreement is reached.
However, morale remained cautious, as US President Donald Trump stated over the weekend that there was no rush to finalize the agreement with Iran, and the US blockade around the Strait of Hormuz remained in place, reducing expectations of an imminent breakthrough.
Investors are closely monitoring developments related to Iran's uranium stockpile and the future of the reopening of the Strait of Hormuz, a vital waterway for global crude oil flows.
The Securities and Exchange Commission (SEC) has given preliminary approval to Nasdaq's plan for crypto options.
Cryptocurrency markets received additional support from news that Nasdaq PHLX had received conditional approval from the U.S. Securities and Exchange Commission (SEC) to list cash-settled Bitcoin index options under the symbol QBTC, pending final approval from the Commodity Futures Trading Commission (CFTC).
The proposed contracts will track the CME CF Bitcoin Real Time Index and be denominated in US dollars rather than actual Bitcoin, allowing investors to trade these instruments via traditional brokerage accounts without needing to open separate crypto derivatives accounts.
Each contract will represent exposure to one Bitcoin, which is much smaller than CME's standard contracts that are equivalent to five Bitcoins, potentially broadening access for smaller individual and institutional investors.
This move represents a new turning point towards the mainstream adoption of digital assets by traditional financial institutions.
Cryptocurrency prices today: Altcoins remain stagnant
Most alternative currencies (altcoins) remained relatively sluggish on Monday.
Ethereum, the world's second-largest cryptocurrency, fell 1% to $2,106.50.
XRP, the third largest cryptocurrency, fell 0.4% to $1.36.
Solana fell by 0.6%, while Cardano and Polygon each dropped by more than 1%.
Regarding meme coins, Dogecoin fell by 0.3%.
