The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the price slipping back to $76,600 during the US session, as geopolitical concerns resurfaced. 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 falling around 3%, while the CoinDesk 20 Index dropped about 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 key 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 has introduced uncertainty, particularly after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran. As a result, oil prices continued to rise, with Brent crude oil climbing over 3% to $107 a barrel and West Texas Intermediate crude oil increasing 2.6% to $97. The Nasdaq edged 0.3% lower, while the S&P 500 remained flat, ahead of a significant earnings week.
Crypto-linked stocks also declined, with Coinbase, Circle, and Galaxy Digital posting losses. Underlying bitcoin's price action is a market struggling to build momentum despite strong institutional demand. Bitfinex analysts note that short-term 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 toward the $75,000 region, adding that a decisive break above $80,000 is required to confirm a more durable bullish regime.