The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price slipping back to $76,600 during US trading hours as geopolitical concerns regained prominence. Following an overnight trading session near $80,000, its highest level since early February, bitcoin reversed direction and declined by approximately 1.5% over 24 hours.
Major alternative cryptocurrencies, including ether, XRP, and solana, each dropped around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, fell by about 2% on Monday. The decline occurs as investors become increasingly cautious about the outlook for 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. Although the proposal aims to restart stalled negotiations, uncertainty remains high after President Trump canceled the dispatch of envoys to Pakistan for negotiations with the Iranian side over the weekend. Oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 per barrel and West Texas Intermediate crude oil increasing by 2.6% to $97. The Nasdaq declined by 0.3% in morning trading, retreating 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 the crypto sector declined across the board, with shares of crypto exchange 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 robust institutional demand. Bitfinex analysts observed that short-term bitcoin holders in profit have been selling into strength, offsetting fresh demand from ETF buyers and other investors.
The analysts noted that the most likely near-term trajectory is 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 trend.