The brief surge of bitcoin towards $80,000 lost steam on Monday, with the cryptocurrency's price slipping to $76,600 during the US trading session, as concerns over geopolitical tensions resurfaced. Following an overnight trade near $80,000, its highest point since early February, bitcoin reversed its course, posting a 1.5% decline over the past 24 hours. Major alternative cryptocurrencies, including ether, XRP, and solana, each saw declines of around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, fell by approximately 2% on Monday.
The pullback occurs amidst 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. A recent proposal by Iran to halt 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, aims to restart stalled negotiations. However, uncertainty remains elevated after President Trump canceled the dispatch of envoys to Pakistan for negotiations with the Iranian side.
Oil prices continued their ascent, with Brent crude oil prices climbing over 3% to $107 per barrel and West Texas Intermediate crude oil rising 2.6% to $97. The Nasdaq retreated 0.3% in morning trading, pulling back from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week. Crypto-linked stocks also declined, with shares of Coinbase falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%.
Underlying bitcoin's price action is a market struggling to gain momentum despite strong institutional demand. Bitfinex analysts observed that short-term bitcoin holders in profit have been selling into strength, offsetting fresh demand from ETF buyers and Strategy.
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 required to confirm a more durable bullish regime.