Bitcoin's push towards $80,000 was short-lived, as the cryptocurrency's price slipped to $76,600 during the US trading session on Monday, driven by resurfacing geopolitical concerns. After nearing $80,000 overnight, 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 dropping around 3%, while the CoinDesk 20 Index fell 2% on Monday.
The pullback is attributed to growing investor caution regarding 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 the lifting of the US naval blockade and delayed nuclear talks, aims to restart stalled negotiations.
However, uncertainty remains high after President Trump canceled plans to send envoys to Pakistan for negotiations with the Iranian side. Oil prices continued to rise, with Brent crude climbing over 3% to $107 a barrel and West Texas Intermediate crude up 2.6% to $97. The Nasdaq edged 0.3% lower, pulling back from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week. Crypto-linked stocks declined, with 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 strong institutional demand. Bitfinex analysts observed that short-term bitcoin holders are selling into strength, offsetting new demand from ETF buyers.
The analysts noted that the near-term path of least resistance is likely consolidation or a pullback towards $75,000, adding that a decisive break above $80,000 is necessary to confirm a more durable bullish trend.