The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's value slipping to $76,600 during the US trading session, as concerns over Iran and rising oil prices regained prominence. Following an overnight peak near $80,000, its highest since early February, bitcoin reversed direction, declining about 1.5% over 24 hours. Major altcoins, including ether, XRP, and solana, each dropped around 3%, with the CoinDesk 20 Index falling 2% on Monday. The downturn comes as investors exercise caution due to uncertainty surrounding US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a crucial global oil transit route.
A proposal by Iran to cease attacks on ships in the strait in exchange for a complete end to the war, including the lifting of the US naval blockade and a delay in nuclear talks, aims to revive stalled negotiations. However, uncertainty remains high after President Trump canceled the planned visit of US envoys to Pakistan for negotiations with Iran.
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 declined 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week. Stocks linked to cryptocurrencies also declined, 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 are selling their profits, offsetting new demand from ETF buyers and strategic investors. The analysts predict that the path of least resistance in the near term is likely 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.