The brief surge of bitcoin towards $80,000 lost steam on Monday, with the cryptocurrency's value slipping to $76,600 during the US trading session, as concerns over geopolitical tensions resurfaced. Following an overnight high near $80,000, its highest point since early February, bitcoin reversed its course, posting a 1.5% decline over 24 hours. Major alternative cryptocurrencies, including ether, XRP, and solana, also declined, each falling around 3%, while the CoinDesk 20 Index, a digital assets market benchmark, dropped approximately 2% on Monday.
The pullback is attributed to growing investor caution regarding the outlook for US-Iran negotiations and the ongoing disruption of 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.
However, uncertainty remains elevated after President Trump canceled plans to send envoys to Pakistan for negotiations with the Iranian side over the weekend. Oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 a 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 major firms such as Alphabet, Meta, Microsoft, and Apple.
Concurrently, crypto-linked stocks declined across the board, 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 robust institutional demand. Bitfinex analysts observed that short-term bitcoin holders in profit have been selling into strength, offsetting fresh demand from ETF buyers and investment strategies.
According to the analysts, the most likely near-term trajectory is consolidation or a pullback towards the $75,000 region, with a decisive break above $80,000 required to confirm a more durable bullish trend.