Bitcoin edged higher at the start of the week, buoyed by a pickup in global risk appetite after a sharp drop in oil prices supported gains across Asian equity markets.

The leading cryptocurrency traded near $77,200 around 6:35 UTC, up roughly 0.4% on the day. Prices remained just above the closely watched 50-day simple moving average at approximately $76,940—a level traders often view as a key indicator of near-term bullish momentum.

Elsewhere in the crypto market, major tokens posted modest advances but lagged behind bitcoin in technical strength. XRP and Solana (SOL) each rose more than 0.6%, while Ether (ETH) gained about 0.4%, though all continued to trade below their respective 50-day averages.

Market sentiment improved after West Texas Intermediate crude futures tumbled more than 5% to around $91 per barrel, extending last week’s retreat from highs above $104. The decline in oil helped lift Asian equities, with India’s Nifty gaining over 1%, Japan’s Nikkei jumping nearly 3%, and Australia’s S&P/ASX 200 advancing 0.4% in early trading.

The drop in crude prices followed signs of easing tensions around the Strait of Hormuz, a key global shipping route that previously accounted for over 20% of oil flows before recent disruptions. Iran’s IRGC reported that more than 20 tankers had passed through the strait, although volumes remain below normal levels.

U.S. Secretary of State Marco Rubio said negotiations with Iran were progressing, suggesting a potential agreement to end hostilities could come as soon as Monday. He noted that while diplomacy remains the focus, alternative measures are still being considered if talks break down.

Despite the improved macro backdrop, caution persists in the crypto market. Analysts point to more than $2 billion in outflows from spot bitcoin ETFs over the past two weeks as a potential headwind.

Timothy Misir, head of research at BRN, emphasized that ETF flows remain a critical driver. While bitcoin may withstand some institutional selling amid stable liquidity and strong long-term holder support, sustained outflows could cap upside momentum.

Meanwhile, India-based exchange CoinSwitch highlighted that a confirmed U.S.-Iran deal may be necessary for a more durable rally. The firm also noted on-chain data showing a net inflow of 18,528 BTC to centralized exchanges, signaling possible rising selling pressure even as broader sentiment improves.