Zcash posted the strongest gains among major cryptocurrencies as oil prices moved lower following reports that President Donald Trump is considering allowing additional time for diplomatic negotiations with Iran. Meanwhile, investors are preparing for Tuesday’s U.S. midterm elections, which could have significant implications for financial markets.

Bitcoin advanced nearly 1% to approximately $78,600 during Monday’s Asian trading hours, extending its recovery to a third consecutive session. The upward move came as Asian investors gradually returned to risk assets following Friday’s sharp decline in U.S. technology stocks.

ZEC led the major digital assets, climbing 3% to almost $1,280. Ether and BNB each increased close to 2%, trading slightly above $2,300 and around $713, respectively. XRP and TRX recorded gains of approximately 1%, while Solana showed little movement near $95, according to CoinDesk market data.

The latest recovery follows a volatile week after Binance revealed a $6.3 billion security breach, described as the largest theft involving a cryptocurrency exchange. The incident triggered widespread selling across the market, pushing Bitcoin down to approximately $77,600 late Sunday. However, buying interest returned within hours, helping BTC recover above $78,500.

Global stock markets also showed signs of improvement after Friday’s technology sector selloff. The Nasdaq 100 declined 3.5%, marking its steepest daily loss since June, while the Philadelphia Semiconductor Index suffered a 7% drop. However, futures linked to the S&P 500 and Nasdaq 100 advanced at least 0.4% on Monday, suggesting improving investor sentiment.

Asian markets followed the positive trend, with benchmark indexes in Japan, South Korea, and Hong Kong moving higher. Chinese equities also gained after reports that regulators planned to meet financial institutions, including banks and brokerages, to discuss potential measures to support the stock market.

In commodities, Brent crude dropped approximately 3% to $110 per barrel. The decline followed reports that Trump wants to extend diplomatic discussions with Iran before considering a possible return to military strikes after Tuesday’s midterm elections. Gold recovered around 1% to approximately $3,910 an ounce, rebounding from Friday’s close, its lowest in more than a year.

Jeff Mei, chief operating officer of crypto exchange BTSE, said the Federal Reserve’s recent statements suggest that restrictive monetary conditions could persist. He expects elevated interest rates and broader macroeconomic pressures to limit liquidity for Bitcoin and other digital assets over the coming months.

Mei also pointed to technology stocks as an important market indicator. He explained that a potential rebound in the sector could suggest that the recent correction has reached its bottom. Such a development might create an attractive entry opportunity for Bitcoin investors while BTC continues trading below $80,000.

Regulatory uncertainty remains another factor influencing the cryptocurrency market. The proposed CLARITY Act aims to establish comprehensive rules for the U.S. digital asset industry, including defining the responsibilities of regulatory agencies and determining which authority will oversee different cryptocurrencies.

Attention is also shifting toward the U.S. midterm elections, with voting scheduled to conclude Tuesday evening. Initial results are expected to emerge during Wednesday’s Asian trading session.

Mei noted that the election outcome could influence both crypto legislation and geopolitical developments. He suggested that Democrats gaining control of Congress could make the CLARITY Act more difficult to advance while potentially increasing pressure to bring the Iran conflict to an earlier conclusion.

A reduction in geopolitical tensions could ease pressure on crude oil prices and help contain inflation. This, in turn, may improve investor appetite for riskier assets and provide additional support for stocks and cryptocurrencies.

For Bitcoin traders, the immediate focus remains on whether the latest recovery can continue above $78,000 and eventually reclaim the $80,000 threshold amid changing macroeconomic and geopolitical conditions.