The bitcoin price surge towards $80,000 was short-lived on Monday, with the cryptocurrency slipping back to $76,600 during the US trading session as geopolitical concerns regained attention. After reaching its highest level since early February, near $80,000, bitcoin reversed direction, posting a 1.5% decline over the past 24 hours. Major altcoins, including ether, XRP, and solana, followed suit, each falling around 3%, while the CoinDesk 20 Index dropped approximately 2% on Monday.
The pullback is attributed to growing investor caution regarding US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a crucial global oil transit route. A recent Wall Street Journal report revealed that Iran has proposed a halt to attacks on ships in the strait 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 remains high after President Trump canceled the planned envoy to Pakistan for negotiations with Iran. Oil prices continued their ascent, with Brent crude oil rising over 3% to $107 per barrel and West Texas Intermediate crude oil increasing 2.6% to $97.
The Nasdaq edged 0.3% lower in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week featuring firms 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%. Bitfinex analysts noted that short-term bitcoin holders are selling into strength, offsetting fresh demand from ETF buyers and Strategy. The analysts predict 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.