Bitcoin rebounds as crypto markets stabilize after sharp selloff

Crypto prices recover after oversold conditions

According to The Block's crypto price page, bitcoin rose 3% to $63,168 in the 24 hours leading up to 10:25 p.m. ET on Sunday. Ethereum gained 6.5% to $1,687, while Solana advanced 4.7% to $66.3 over the same period. Despite the rebound, bitcoin remains down roughly 15% over the past week and has underperformed many other risk assets.

Min Jung, associate researcher at Presto Research, characterized bitcoin’s latest move as a “classic oversold relief rally.” Jung said bitcoin’s roughly 5% rebound on Sunday morning may be partly due to the market having become oversold after last week’s sharp selloff, suggesting that a significant amount of negative news may have been priced in over the weekend.

Recent pressure on bitcoin has been attributed to several factors, including large outflows from crypto spot exchange-traded funds, sales by Strategy against its previous “never sell” narrative, and ongoing tensions between the U.S. and Iran. During the downturn, bitcoin fell to its lowest level in more than two months.

Alongside bitcoin’s partial recovery, Strategy Chairman Michael Saylor posted a Strategy bitcoin acquisition tracker chart on Sunday morning with the caption “A good time to add more dots,” widely interpreted as a signal that the firm may disclose a new BTC purchase in the coming week.

Asian equity selloff and macro headwinds

Bitcoin’s rebound coincided with a sharp decline in South Korea’s stock market. The benchmark KOSPI index fell more than 8% after the Monday market open, triggering a circuit breaker halt. Semiconductor-related stocks led the drop, with Samsung down 7.3% and SK Hynix losing 4%.

BTSE COO Jeff Mei said traders may be reducing exposure to tech stocks as risks from a potential prolonged U.S.-Iran conflict, high oil prices, and interest rate hikes continue to weigh on markets. Although there is structural overlap between South Korea’s retail equity and cryptocurrency markets, analysts said a major capital migration from domestic stocks to digital assets is unlikely.

“The KOSPI's plunge didn't cause bitcoin's rebound, but it highlights the same macro forces driving risk markets,” Zeus Research Analyst Dominick John said. He cited a deeply oversold setup, short-covering, and renewed institutional optimism as factors supporting bitcoin. John added that bitcoin holding above the key $60,000 support zone keeps the bullish structure intact, though rising geopolitical tensions or weakening macro conditions could still pressure support levels and shift sentiment.

Other Asian equity markets also retreated on Monday morning. Japan’s Nikkei 225 Index fell 4%, Taiwan’s TAIEX slid 4.25%, and the Shanghai Composite dropped 1%. Analysts noted that digital assets face similar macroeconomic headwinds, including growing anticipation of a Federal Reserve rate hike, supported by April U.S. data showing job openings at their highest level in nearly two years, and heightened geopolitical tensions following Iran’s ballistic missile launches at Israel and subsequent Israeli airstrikes.

FAQ

What were the key price moves in major cryptocurrencies?
Bitcoin rose 3% to $63,168 in the 24 hours to 10:25 p.m. ET on Sunday, Ethereum gained 6.5% to $1,687, and Solana increased 4.7% to $66.3.

Why do analysts describe bitcoin’s move as a relief rally?
Analysts, including Min Jung, said bitcoin’s rebound followed oversold conditions after a sharp selloff, with much of the negative news already priced in, indicating a relief rally rather than a confirmed trend reversal.

How did South Korean and other Asian equity markets perform?
South Korea’s KOSPI fell more than 8%, triggering a circuit breaker, with notable declines in Samsung and SK Hynix. Japan’s Nikkei 225 dropped 4%, Taiwan’s TAIEX slid 4.25%, and the Shanghai Composite declined 1%.

What macro factors are influencing both crypto and equity markets?
Analysts pointed to expectations of a Federal Reserve rate hike, high oil prices, and escalating geopolitical tensions between the U.S., Iran, and Israel as key headwinds affecting risk assets, including both digital assets and equities.