Bitcoin's push towards $80,000 was short-lived, as the cryptocurrency's price slipped back to $76,600 during Monday's US trading session, influenced by growing geopolitical concerns. Following an overnight high near $80,000, its highest level since early February, bitcoin reversed direction, posting a 1.5% decline over 24 hours. Major alternative cryptocurrencies, including ether, XRP, and solana, also fell, each dropping around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital asset market, decreased by approximately 2% on Monday. The downturn is attributed to investor caution over the outlook for US-Iran negotiations and the ongoing disruption to 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 high after President Trump canceled plans to send envoys to Pakistan for negotiations with the Iranian side.
Oil prices continued their ascent, with Brent crude oil climbing over 3% to $107 a barrel and West Texas Intermediate crude oil rising 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. Crypto-linked stocks also declined, 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 strong institutional demand.
Bitfinex analysts observed that short-term bitcoin holders are selling into strength, offsetting fresh demand from ETF buyers and other investors. According to the analysts, the near-term path of least resistance is likely consolidation or a pullback towards the $75,000 region, with a decisive break above $80,000 required to confirm a more durable bullish trend.