Bitcoin's push towards $80,000 was short-lived, as the cryptocurrency's price slipped to $76,600 during the US trading session on Monday, with geopolitical concerns regaining attention. Following an overnight trade near $80,000, its highest level since early February, bitcoin reversed direction, dropping approximately 1.5% over 24 hours.
Major alternative cryptocurrencies, including ether, XRP, and solana, followed suit, each declining around 3%, while the CoinDesk 20 Index fell about 2% on Monday. The pullback occurs as investors become increasingly cautious about the prospects of US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a crucial global oil transit route. A recent Wall Street Journal report revealed that Iran has proposed ceasing attacks on ships in the strait in exchange for a comprehensive end to the war, including the lifting of the US naval blockade and delayed nuclear talks.
Although the proposal aims to restart stalled negotiations, uncertainty persists 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 2.6% to $97. The Nasdaq dipped 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week featuring tech giants such as Alphabet, Meta, Microsoft, and Apple.
Meanwhile, crypto-related stocks 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 build momentum despite robust institutional demand.
Bitfinex analysts noted that short-term bitcoin holders in profit have been selling into strength, offsetting fresh demand from ETF buyers and Strategy. The analysts stated that the most likely near-term path is consolidation or a pullback towards the $75,000 region, adding that a decisive break above $80,000 is required to confirm a more durable bullish regime.