The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price slipping to $76,600 during the US trading session, as concerns over geopolitical tensions resurfaced. Following an overnight high near $80,000, its highest level since early February, bitcoin reversed direction, posting a 1.5% decline over the past 24 hours.
Major alternative cryptocurrencies, including ether, XRP, and solana, also fell by approximately 3%. The CoinDesk 20 Index, a gauge of the broader digital asset market, decreased by 2% on Monday. The pullback occurs as investors become increasingly cautious about the prospects for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route.
A report by the Wall Street Journal indicates that Iran has proposed a cessation of attacks on ships in the strait in exchange for a comprehensive end to the war, including the lifting of the US naval blockade and a delay in nuclear talks. The proposal aims to revive stalled negotiations, but uncertainty remains high after President Trump canceled the dispatch of envoys to Pakistan for negotiations with the Iranian side on Saturday. Oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 per barrel and West Texas Intermediate crude oil increasing by 2.6% to $97. The Nasdaq declined by 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week that includes major firms such as Alphabet, Meta, Microsoft, and Apple.
Meanwhile, stocks linked to cryptocurrencies declined across the board, with shares of crypto exchange Coinbase falling 1.5%, Circle, the issuer of the USDC stablecoin, dropping 3.5%, and Galaxy Digital, a digital asset investment firm, sliding nearly 6%. According to Bitfinex analysts, the underlying price action of bitcoin suggests a market struggling to gain momentum despite robust institutional demand. The analysts noted that short-term bitcoin holders who are in profit have been selling into strength, offsetting fresh demand from ETF buyers and Strategy.
The path of least resistance in the near term is likely consolidation or a pullback towards the $75,000 region, the analysts stated, adding that a decisive break above $80,000 is required to confirm a more durable bullish regime.