The brief rally of bitcoin, with the price reaching toward $80,000, lost momentum on Monday as the cryptocurrency's value dropped to $76,600 during the US trading session, with geopolitical concerns resurfacing. Following an overnight high near $80,000, its highest point since early February, the largest digital currency reversed direction, posting a 1.5% decline over 24 hours. Major alternative cryptocurrencies, including ether, XRP, and solana, also fell around 3%, while the CoinDesk 20 Index, a gauge of the broader digital assets market, declined by 2% on Monday.
This pullback occurs as investors become increasingly cautious about the outlook for US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a critical global oil transit route. A Wall Street Journal report indicates that 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. However, uncertainty remains high after President Trump canceled the planned envoy 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 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 that includes 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 strategic investors. According to the analysts, the most likely near-term path is consolidation or a pullback toward the $75,000 region, adding that a decisive break above $80,000 is necessary to confirm a more durable bullish trend.