The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price declining to $76,600 during the US trading session as concerns over geopolitical tensions resurfaced. After reaching its highest point since early February, near $80,000, bitcoin reversed direction, posting a 1.5% decline over the past 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 assets market, decreased by 2% on Monday.
The pullback is attributed to growing investor caution regarding the outlook for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. Iran has proposed a halt to 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, aiming to restart stalled negotiations. However, uncertainty remains high following President Trump's cancellation of envoy negotiations with Iran.
Oil prices continued to rise, with Brent crude oil prices climbing over 3% to $107 a barrel and West Texas Intermediate crude oil increasing by 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.
Meanwhile, crypto-linked stocks 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 build momentum despite strong institutional demand. Bitfinex analysts noted that short-term bitcoin holders are selling into strength, offsetting fresh demand from ETF buyers. The analysts predict that the path of least resistance in the near term is likely 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.