Bitcoin's push towards $80,000 was short-lived, as the cryptocurrency's price fell to $76,600 during the US trading session on Monday, influenced by escalating geopolitical tensions. Having traded near $80,000 overnight, its highest level since early February, bitcoin reversed direction, posting a 1.5% decline over 24 hours. Major alternative cryptocurrencies, including ether, XRP, and solana, followed suit, each dropping around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital asset market, decreased by 2% on Monday.
The retreat coincides with growing investor caution regarding US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. According to reports, Iran has proposed a halt to 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. Although this proposal aims to revive stalled negotiations, uncertainty persists following President Trump's cancellation of envoy meetings with Iran.
Oil prices continued their ascent, with Brent crude oil rising over 3% to $107 per barrel and West Texas Intermediate crude oil increasing by 2.6% to $97. The Nasdaq slipped 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week featuring firms like Alphabet, Meta, Microsoft, and Apple. Meanwhile, stocks linked to the crypto sector declined, with Coinbase shares falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Underlying bitcoin's price movement is a market struggling to gain momentum despite robust institutional demand.
Bitfinex analysts observed that short-term bitcoin holders are selling into strength, offsetting new 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 necessary to confirm a more durable bullish trend.