The bitcoin price surge towards $80,000 was short-lived, as it slipped back to $76,600 during the US trading session on Monday, with geopolitical tensions regaining attention. After nearing $80,000 overnight, its highest level since early February, the cryptocurrency reversed direction, declining by approximately 1.5% over the past 24 hours.
Major altcoins, including ether, XRP, and solana, each dropped around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, fell about 2% on Monday. The pullback 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. A recent proposal by Iran to halt attacks on ships in the strait in exchange for a full end to the war, including lifting the US naval blockade and delaying nuclear talks, aims to restart stalled negotiations.
However, uncertainty remains high after President Trump canceled sending envoys to Pakistan for negotiating with the Iranian side. Oil prices continued to rise, with Brent crude oil prices climbing over 3% to $107 a barrel and West Texas Intermediate crude oil up 2.6% to $97. The Nasdaq edged 0.3% lower in morning trading, pulling back from recent record highs, while the S&P 500 was flat, ahead of a significant earnings week.
Meanwhile, crypto-linked stocks declined across the board, with shares of crypto exchange Coinbase falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Under the surface, bitcoin's price action suggests a market struggling to build momentum despite strong institutional demand. Bitfinex analysts observed that short-term BTC holders selling into strength are offsetting fresh demand from ETF buyers and other investors, indicating a potential period of consolidation or a pullback toward the $75,000 region.