The brief bitcoin surge toward $80,000 lost momentum on Monday, with the price dropping back to $76,600 during the US trading session, as geopolitical concerns regained prominence. Following an overnight trade near $80,000, its highest level since early February, the largest cryptocurrency reversed direction and declined by approximately 1.5% over the past 24 hours. Major alternative cryptocurrencies followed suit, with ether, XRP, and solana each experiencing a decline of around 3%. The CoinDesk 20 Index, a benchmark for the broader digital assets market, fell by about 2% on Monday.
The pullback occurs as investors become more cautious about the outlook for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a crucial global oil transit route. According to a report by The Wall Street Journal, Iran has proposed a cessation of 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.
The proposal aims to restart stalled negotiations, but uncertainty remains high after President Trump canceled the dispatch of envoys to Pakistan for negotiations with the Iranian side on Saturday. Oil prices continued their ascent during the day, with Brent crude oil prices rising by more than 3% to $107 per barrel, while West Texas Intermediate crude oil increased by 2.6% to $97.
The Nasdaq declined by 0.3% in morning trading, pulling back from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week that includes companies such as Alphabet, Meta, Microsoft, and Apple. Meanwhile, stocks linked to cryptocurrency declined across the board, with shares of crypto exchange Coinbase 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 gather momentum despite robust institutional demand.
Bitfinex analysts noted that short-term bitcoin holders who are in profit have been selling into strength, offsetting fresh demand from ETF buyers and other strategies. The analysts stated that the most likely path in the near term is consolidation or a pullback toward the $75,000 region, adding that a decisive break above $80,000 is required to confirm a more durable bullish regime.