Bitcoin rebounds to $83,000 as chip stocks lead broad market recovery amid geopolitical crosscurrents

Bitcoin rebounds to $83,000 as chip stocks lead broad market recovery

Bitcoin climbed from an overnight low near $80,700 to just above $83,000 early Monday before slipping back to about $82,400 within half an hour, leaving the token up 0.3% over 24 hours but still roughly $1,000 below the ceiling that turned it back twice last week near $84,000, CoinDesk reported. An exchange-traded fund tracking chipmakers jumped 3% before the U.S. open, on course for its first gain in 10 sessions, while Nasdaq 100 futures climbed 1.1%, snapping a weeklong 5.5% selloff, and S&P 500 futures rose 0.5%.

WTI futures recovered to $98.55, down just 0.5% on the day after hitting a low of $96.72 during Asian hours, CoinDesk reported, signaling a broader risk-on shift across asset classes.

Crypto and equity markets snap losing streaks

The moves snapped a punishing stretch for technology shares and digital assets, with the chip ETF's advance marking its first positive session in ten and the Nasdaq 100 futures erasing a portion of the previous week's 5.5% decline, CoinDesk reported.

Geopolitical tensions frame the rebound

Geopolitical developments added a volatile backdrop: the U.S. reportedly issued warnings across 12 locations in the Middle East, alerting citizens to potential flight cancellations and airspace closures, CoinDesk reported, underscoring the region's fragility as a market factor.

Ukraine sanctions hold adds to uncertainty

In a separate but concurrent development, Ukrainian President Volodymyr Zelenskyy urged supporters Saturday to speak out in favor of new U.S. sanctions against Russia, hours after President Donald Trump signed an executive order putting the sweeping restrictions on hold, PBS News reported. The bill had sought to sanction Russian officials, banks and a shadow fleet of tankers that keeps Russian energy moving, and Trump personally signed the legislation just last month before halting it two days before a statutory implementation deadline.

Trump's unexpected decision came a week after he had agreed to purchase diesel from Russia to try to bring down global energy prices, despite that potentially hurting Ukraine, PBS News reported. Republicans and Democrats alike said the purchase will help Russia execute its war against Ukraine without making a difference to global fuel prices, which are elevated mostly due to Trump's war on Iran, while Sen. Richard Blumenthal, who co-drafted the bill, criticized Trump's move, saying the president was turning his back on the majority of Americans, their representatives in both houses of Congress, and European allies.

The White House decision has heightened fears that Ukraine could be left exposed to Moscow's escalating attacks as winter approaches, PBS News reported. Zelenskyy said Kyiv was investigating sudden speed restrictions on Ukraine's use of Starshield, the military-grade version of SpaceX's Starlink satellite internet service, which is the backbone of Ukraine's drone operations and communication; the restrictions, imposed without warning early Thursday, cut the internet data connection when a communication terminal moves faster than 160 kph (100 mph), forcing Ukrainian drones to fly slower than usual and making it easier for Russian weapons to target or evade them.

Zelenskyy called Trump's decision unfortunate but avoided directly criticizing the U.S. leader despite deepening tensions between Ukraine and Washington in recent days, PBS News reported. He said there were no similar restrictions in European Union countries and that they apply only to Ukraine, and added that the U.S. was working to arrange a three-way meeting involving him, Trump and Putin, potentially in the Middle East, Europe or the United States. Zelenskyy also said Ukraine's lead negotiator, Rustem Umerov, had met Friday with U.S. presidential envoy Jared Kushner, Trump's son-in-law.

Israel election and Middle East warnings add layers

Meanwhile, President Donald Trump on Sunday endorsed embattled Israeli Prime Minister Benjamin Netanyahu late in his reelection campaign, ABC News reported. Israelis are set to vote Oct. 27 in the first national elections since Hamas attacked Israel on Oct. 7, 2023. Trump said Netanyahu "has been a Great Warrior Prime Minister, and an even greater Partner for Peace in combatting the Islamic Republic of Iran," and warned that "if Israel has the wrong Leader, which would be anyone other than Bibi, America will have to do this work ourselves, and I am not inclined to do so."

Trump endorsed Netanyahu in past elections and in November sent a letter to Israeli President Isaac Herzog asking him to pardon Netanyahu on corruption charges, ABC News reported. But Trump's comments about Netanyahu in recent months had been much more subdued, and he repeatedly demurred when asked if he would back the prime minister; in a Time magazine interview published this month, Trump said, "I'm not involved in politics anymore," despite his campaigning for and endorsing U.S. politicians. Trump, especially in his second term, has sought to give his stamp of approval to candidates in foreign elections and claimed credit when they have been successful.

Netanyahu thanked Trump in a Hebrew statement posted on X, and his Likud Party attached a 35-second video showing clips of the two leaders together and Trump praising Netanyahu, ABC News reported. Many Israelis, including leading commentators, have expressed disappointment over the inconclusive outcome of the Iran war and Trump's ceasefire proposal, which fell short of many of the countries' key goals when they jointly launched the war in February. The absence of an endorsement had been a setback for the Likud politician, who had billed his tight ties to the Republican president as a selling point for staying in power, though it was not immediately clear what impact the endorsement would have on what is expected to be a tight race.

What happens next

Markets now watch whether the Bitcoin rebound can sustain above $83,000 and retest the $84,000 resistance that capped advances on Oct. 13 and 14, while the Oct. 27 Israeli election, the fate of the paused Russia sanctions, and the trajectory of Middle East airspace risks remain live variables for risk assets. (ABC News; CoinDesk)