Bitcoin's brief surge towards $80,000 lost momentum on Monday, with the cryptocurrency's value slipping to $76,600 during the US trading session as concerns over geopolitical tensions resurfaced. After reaching its highest level since early February, near $80,000, the largest digital currency reversed its course, experiencing a decline of approximately 1.5% over the past day. Major alternative cryptocurrencies followed suit, with ether, XRP, and solana each experiencing a drop of around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, fell by about 2% on Monday.
The decline coincides with growing investor caution regarding the outlook for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. A recent Wall Street Journal report revealed that Iran has proposed a halt to 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. Although the proposal aims to restart stalled negotiations, uncertainty remains high after President Trump canceled the dispatch of 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 per barrel and West Texas Intermediate crude oil increasing by 2.6% to $97.
The Nasdaq experienced a 0.3% decline 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. Meanwhile, stocks linked to the crypto sector declined across the board, 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 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 Strategy. The analysts noted that the most likely near-term scenario is consolidation or a pullback towards the $75,000 region, adding that a decisive break above $80,000 is necessary to confirm a more durable bullish trend.