The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price declining to $76,600 during the US trading session. This reversal came as global tensions, particularly concerning US-Iran negotiations and the impact on oil prices, regained attention. Following its highest level since early February near $80,000, bitcoin saw a 1.5% decline over 24 hours, with major altcoins like ether, XRP, and solana experiencing drops of around 3%. The CoinDesk 20 Index, a digital assets market benchmark, fell by approximately 2% on Monday.
The pullback is attributed to investor caution regarding the US-Iran negotiations outlook and the ongoing disruption in the Strait of Hormuz, a critical global oil transit route. Iran's proposal 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 delaying nuclear talks, aims to restart stalled negotiations. However, uncertainty remains high after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran.
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 edged 0.3% lower, pulling back from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week. Crypto-linked stocks also declined, 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 gain momentum despite strong institutional demand. Bitfinex analysts noted that short-term bitcoin holders are selling into strength, offsetting fresh demand from ETF buyers and investment strategies.
The analysts predict that the path of least resistance in the near term is likely consolidation or a pullback towards the $75,000 region, requiring a decisive break above $80,000 to confirm a more durable bullish trend.