The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price slipping to $76,600 during the US trading session as geopolitical concerns resurfaced. Following an overnight high near $80,000, its highest level since early February, bitcoin reversed direction and declined by about 1.5% over the past 24 hours. Major altcoins, including ether, XRP, and solana, also fell around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, dropped approximately 2% on Monday. The pullback occurs as investors become increasingly cautious about the prospects of US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a crucial global oil transit route.
A proposal by Iran to halt attacks on ships in the strait in exchange for a complete end to the war, including the lifting of the US naval blockade and delayed nuclear talks, aims to restart stalled negotiations. However, uncertainty remains high after President Trump canceled the planned visit of US envoys to Pakistan for negotiations with the Iranian side. Oil prices continued to rise, with Brent crude oil prices climbing over 3% to $107 a barrel and West Texas Intermediate crude oil up 2.6% to $97.
The Nasdaq declined 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week featuring companies like Alphabet, Meta, Microsoft, and Apple. Meanwhile, crypto-linked stocks declined across the board, with Coinbase shares falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Underlying bitcoin's price action is a market struggling to build momentum despite robust institutional demand.
Bitfinex analysts noted that short-term bitcoin holders who are in profit have been selling into strength, offsetting fresh demand from ETF buyers and Strategy. The analysts believe that the path of least resistance in the near term is likely consolidation or a pullback towards the $75,000 region, adding that a decisive break above $80,000 is required to confirm a more durable bullish regime.