The brief surge of bitcoin toward $80,000 lost momentum on Monday, with the cryptocurrency's price slipping to $76,600 during the US trading session, as geopolitical concerns resurfaced. Following an overnight high near $80,000, its highest level since early February, bitcoin reversed direction, posting a 1.5% decline over 24 hours.
Major alternative cryptocurrencies followed suit, with ether, XRP, and solana each experiencing a 3% drop. The CoinDesk 20 Index, a benchmark for the broader digital asset market, fell approximately 2% on Monday. The pullback comes as investors become increasingly cautious about the prospects of US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical 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 planned dispatch of envoys to Pakistan for negotiations with the Iranian side. Oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 per barrel and West Texas Intermediate crude oil increasing 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 featuring major firms such as Alphabet, Meta, Microsoft, and Apple.
Meanwhile, stocks linked to cryptocurrency declined across the board, 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 gain momentum despite robust institutional demand. Bitfinex analysts observed that short-term bitcoin holders who are in profit have been selling into strength, offsetting new demand from ETF buyers and other investors.
The analysts noted that the most likely near-term scenario is consolidation or a pullback toward the $75,000 region, adding that a decisive break above $80,000 is necessary to confirm a more sustainable bullish trend.