The brief surge of Bitcoin towards $80,000 lost momentum on Monday, with prices falling back to $76,600 during the US trading session, as geopolitical concerns resurfaced. After nearing $80,000 overnight, its highest level since early February, the largest cryptocurrency reversed direction, posting a 1.5% decline over 24 hours. Major altcoins, including ether, XRP, and solana, also fell around 3%, while the CoinDesk 20 Index dropped about 2% on Monday.
The pullback is attributed to growing caution among investors regarding US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a critical global oil transit route. A proposal by Iran to halt attacks on ships in the strait in exchange for a complete 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 Iran. Oil prices continued to rise, with Brent crude oil climbing over 3% to $107 a barrel and West Texas Intermediate crude oil up 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, Circle, and Galaxy Digital posting losses. Beneath the surface, Bitcoin's price action suggests 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 investment strategies.
The analysts noted that the path of least resistance in the near term is likely consolidation or a pullback toward the $75,000 region, and a decisive break above $80,000 is required to confirm a more durable bullish trend.