The brief surge of bitcoin towards $80,000 lost momentum on Monday, with prices dropping back to $76,600 during the US session, as geopolitical concerns regained attention. After reaching its highest level since early February, near $80,000, the largest cryptocurrency reversed direction, posting a 1.5% decline over 24 hours. Major altcoins followed suit, with ether, XRP, and solana each experiencing a 3% decline.
The CoinDesk 20 Index, a benchmark for the broader digital assets market, fell 2% on Monday. The pullback occurs as investors become cautious about the prospects of US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. A Wall Street Journal report revealed that Iran proposed halting attacks on ships in the strait in exchange for a complete end to the war, including the lifting of the US naval blockade and delaying nuclear talks. However, uncertainty remains high after President Trump canceled sending 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 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 shares falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%.
Beneath the surface, bitcoin's price action suggests a market struggling to gain momentum despite strong institutional demand. Bitfinex analysts observed that short-term BTC holders are selling into strength, offsetting fresh demand from ETF buyers and Strategy. The analysts noted that the most likely near-term path is consolidation or a pullback towards the $75,000 region, adding that a decisive break above $80,000 is necessary to confirm a more sustainable bullish trend.