Bitcoin's brief push towards $80,000 lost momentum on Monday, with the cryptocurrency slipping back to $76,600 during the US trading session as concerns over US-Iran relations resurfaced. Following an overnight high near $80,000, its highest point since early February, bitcoin reversed direction and declined around 1.5% over 24 hours. Major alternative cryptocurrencies, including ether, XRP, and solana, also fell, each dropping approximately 3%, while the CoinDesk 20 Index, a digital assets benchmark, decreased about 2% on Monday. The decline is attributed to growing investor caution regarding US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a key oil transit route.
According to reports, Iran has proposed a ceasefire in exchange for ending the war and lifting the US naval blockade, but uncertainty remains high after President Trump canceled planned negotiations with Iran. Oil prices rose, 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, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week. Crypto-linked stocks also declined, with Coinbase, Circle, and Galaxy Digital shares falling 1.5%, 3.5%, and nearly 6%, respectively.
Underlying bitcoin's price action is a market struggling to gain momentum despite strong institutional demand. Bitfinex analysts noted that short-term holders are selling into strength, offsetting demand from ETF buyers.
The analysts predict that the near-term path of least resistance is likely consolidation or a pullback towards the $75,000 region, requiring a decisive break above $80,000 to confirm a more durable bullish trend.