The bitcoin price surge towards $80,000 was short-lived on Monday, with the cryptocurrency retreating to $76,600 during the US trading session as concerns over Iran and rising oil prices resurfaced. After reaching its highest level since early February, near $80,000, bitcoin reversed direction, posting a 1.5% decline over 24 hours.
Major alternative cryptocurrencies, including ether, XRP, and solana, also fell, each declining around 3%, while the CoinDesk 20 Index dropped 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 critical global oil transit route. A recent proposal by Iran to halt attacks on ships in the strait in exchange for a full end to the war, including the lifting of the US naval blockade and delayed nuclear talks, aims to restart stalled negotiations, but uncertainty remains high.
Oil prices continued to rise, with Brent crude oil climbing over 3% to $107 a barrel, and West Texas Intermediate crude oil up 2.6% to $97. The Nasdaq edged 0.3% lower, pulling back from recent record highs, while the S&P 500 was 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. According to Bitfinex analysts, the bitcoin price action suggests a struggle to build momentum despite strong institutional demand, as short-term holders selling into strength offset fresh demand from ETF buyers and other investors.