Bitcoin rose on Monday, recovering part of last week’s steep losses, as signs of renewed buying by major investors (“whales”) provided support for the market.

The world’s largest cryptocurrency gained 2.2% to $111,790.8 by 02:31 ET (06:31 GMT), after sliding last week to a three-week low below $109,000. Bitcoin had lost more than 5% over the past week amid broad selling pressure and heavy liquidations of open positions.

Whale buying provides support after sell-off

Blockchain tracking platforms showed that large investors ramped up purchases in recent sessions, helping stabilize prices. This followed a volatile week in which a single day of liquidations wiped out about $1.5 billion in long positions across exchanges.

The bearish tone was compounded by the expiry of $22 billion in cryptocurrency options contracts at the end of the third quarter, which added further pressure on Bitcoin and other digital assets.

At the same time, sentiment on Monday remained cautious as investors tracked developments in Washington, where lawmakers have until September 30 to pass a funding bill and avoid a government shutdown. Such a standoff raised concerns over possible delays in key US economic releases, including Friday’s nonfarm payrolls report, adding uncertainty to financial markets.

Although a shutdown would not directly affect the Bitcoin network, risk-off sentiment in global markets could weigh on cryptocurrencies.

Kraken seeks funding at $20 billion valuation – Bloomberg

Bloomberg reported Friday that crypto exchange Kraken is in advanced talks to raise new funding that would value the company at around $20 billion. The proposed round may include a strategic investor contributing between $200 million and $300 million.

This interest reflects improving investor appetite toward digital asset companies, supported by clearer regulatory frameworks and growing participation of financial institutions in crypto markets.

Oil prices fell by more than 1% on Monday, pressured by expectations that OPEC+ will approve a new production hike in November and by the resumption of crude exports from Iraq’s Kurdistan region through Turkey, reinforcing forecasts of rising global supply.

Brent crude futures dropped $1.01, or 1.4%, to $69.12 a barrel by 10:19 GMT, after ending Friday at their highest level since July 31. US West Texas Intermediate (WTI) crude fell $1.11, or 1.7%, to $64.61 a barrel.

OPEC+, which includes the Organization of the Petroleum Exporting Countries and its allies, is expected to approve another output increase at its meeting next Sunday. According to three informed sources, the group is likely to confirm a boost of no less than 137,000 barrels per day for November, as higher oil prices drive members to reclaim market share.

However, OPEC+ is currently pumping about 500,000 barrels per day below its official targets, contradicting earlier expectations of a potential supply glut.

Meanwhile, Iraq’s Oil Ministry announced that crude began flowing on Saturday through a pipeline from the semi-autonomous Kurdistan region to Turkey for the first time in two and a half years. Iraq’s oil minister told Kurdish television station Rudaw on Friday that a temporary deal between Baghdad, the Kurdistan Regional Government, and foreign oil producers would allow between 180,000 and 190,000 barrels per day to reach Turkey’s Ceyhan port. Gradual ramp-up could return as much as 230,000 barrels per day to global markets.

Monday’s decline comes after both benchmarks gained more than 4% last week, supported by Ukrainian drone strikes on Russian energy infrastructure that disrupted fuel exports. Analysts at SEB said: “Ukraine naturally sees this as an opportunity… and is likely to intensify its strategic targeting of Russian refineries.”

In response, Russia launched one of its largest attacks on Kyiv and other regions on Sunday since the invasion began in 2022.

Separately, the United Nations reimposed an arms embargo and other sanctions on Iran over its nuclear program, a move Tehran warned would be met with a “harsh” response.

Silver prices rose in the European market on Monday, extending gains for a third consecutive session and hitting a new 14-year high after breaking above $47 per ounce for the first time since 2011, supported by the ongoing decline in the US dollar.

The rally is also being fueled by accelerating demand from retail investors, who view silver as undervalued compared to gold, which continues to reach record highs.

Price Overview

• Silver prices today: The metal climbed 2.45% to $47.19, the highest since May 2011, up from an opening of $46.07, with a session low of $45.95.

• On Friday, silver settled 1.95% higher, its second straight daily gain, after revised US consumer inflation data.

• Last week, silver advanced nearly 7%, marking a sixth consecutive weekly gain amid strong demand for the white metal.

US Dollar

The dollar index fell 0.3% on Monday, extending losses into a second session and retreating from a three-week high of 98.61, reflecting continued weakness of the greenback against major peers.

A weaker dollar makes dollar-denominated commodities cheaper for holders of other currencies. In addition to profit-taking, the dollar remains pressured by the looming risk of a US government shutdown and strong expectations that the Federal Reserve will cut interest rates in October and December.

To reprice these expectations, markets are awaiting a series of key US labor market reports this week along with comments from Fed officials.

Retail Demand

As retail investors search for financial assets to hedge against risks tied to the global shift toward looser monetary policy, silver is emerging as the most attractive, undervalued option compared with gold.

The current surge in silver prices reflects increased recognition among retail traders that the white metal remains significantly undervalued relative to gold, even as the latter continues setting fresh record highs.

The US dollar fell on Monday amid concerns over a potential partial government shutdown, while the Japanese yen outperformed the euro ahead of a series of key US economic releases that could provide further signals on the Federal Reserve’s policy path.

The dollar had risen last week, supported by economic data that reduced expectations for Fed rate cuts. Traders are currently pricing in a total of 40 basis points in cuts by December, and 110 basis points by the end of 2026 — about 25 basis points less than anticipated in mid-September.

Partial Government Shutdown Looms

The dollar index, which tracks the greenback against a basket of major currencies, dropped 0.22% on Monday to 97.90, after gaining 0.5% last week.

Investors’ primary concern is the risk of a government shutdown if Congress fails to pass a funding bill before the fiscal year ends on Tuesday. Without a deal, parts of the government would shut down on Wednesday, the first day of fiscal year 2026.

Analysts note that the dollar typically weakens ahead of such crises before rebounding once a deal is reached. However, this time the risk may weigh more heavily given the labor market’s existing signs of slowdown. A shutdown could also delay the release of the closely watched nonfarm payrolls report due Friday, along with other economic data.

Bob Savage, head of macro markets strategy at BNY, said: “A prolonged shutdown, which cannot be ruled out, could impair the market’s ability to properly price the Fed’s easing cycle, even if some private data sources help fill part of the gap.”

Investors are also awaiting this week’s reports on job openings, private sector payrolls, and the ISM manufacturing index ahead of Friday’s employment data.

Legal Battle Over Fed Governor Lisa Cook

Markets are closely watching the legal fight over the potential dismissal of Fed Governor Lisa Cook, as any threat to the central bank’s independence poses a bigger risk to the dollar than the shutdown itself.

President Donald Trump’s administration has asked the Supreme Court to allow him to remove Cook, arguing it represents a lawful exercise of presidential authority.

Currency Moves

The euro rose 0.25% to $1.1729, while the British pound gained 0.34% to $1.3445. Analysts believe eurozone inflation data will have limited impact on monetary policy expectations or the single currency, with attention instead focused on the war in Ukraine and the potential for increased military spending.

Against the yen, the dollar fell 0.6% to ¥148.67, after gaining more than 1% last week. Still, diverging monetary policy outlooks remain in focus as signs of a hawkish tilt emerge within the Bank of Japan.

Mohit Kumar, economist at Jefferies, said: “We prefer short positions on USD/JPY and expect further rate hikes from the Bank of Japan.” He added that “some Asian countries may allow their currencies to strengthen as part of trade negotiations with the US.”

Elsewhere, the Australian dollar climbed 0.35% to $0.6571 ahead of Tuesday’s policy decision from the Reserve Bank of Australia, where no change in rates is expected.