The bitcoin price surge towards $80,000 was short-lived, as it retreated to $76,600 during the US trading session on Monday due to escalating geopolitical tensions. After reaching its highest level since early February, near $80,000, the largest cryptocurrency reversed direction, posting a 1.5% decline over the past 24 hours.
Major altcoins, including ether, XRP, and solana, followed suit, each dropping around 3%, while the CoinDesk 20 Index, a digital assets market benchmark, fell 2% on Monday. The pullback is attributed to investor caution regarding US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. According to reports, Iran has proposed a ceasefire in exchange for a complete end to the war, including the lifting of the US naval blockade and a delay in nuclear talks.
However, uncertainty persists after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran. Oil prices continued to rise, with Brent crude oil prices increasing by over 3% to $107 a barrel, and West Texas Intermediate crude oil rising 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.
Crypto-linked stocks also declined, with Coinbase, Circle, and Galaxy Digital falling 1.5%, 3.5%, and nearly 6%, respectively. Bitfinex analysts observed that short-term bitcoin holders are selling into strength, offsetting fresh demand from ETF buyers. They noted that the near-term outlook points to consolidation or a pullback towards the $75,000 region, and a decisive break above $80,000 is required to confirm a more durable bullish trend.