Bitcoin's push towards $80,000 was short-lived, as the cryptocurrency's price slipped back to $76,600 during Monday's US trading session, driven by renewed geopolitical concerns. After reaching its highest level since early February, near $80,000, bitcoin reversed course, posting a 1.5% decline over 24 hours.
Major alternative cryptocurrencies, including ether, XRP, and solana, also fell, with declines of around 3%. The CoinDesk 20 Index, a benchmark for the broader digital assets market, dropped 2% on Monday. The decline comes 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 the lifting of the US naval blockade and delayed nuclear talks, aims to restart stalled negotiations, but uncertainty remains high.
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, while the S&P 500 was flat, ahead of a significant earnings week. Meanwhile, crypto-linked stocks declined, with shares of Coinbase, Circle, and Galaxy Digital falling.
Underlying bitcoin's price action is a market struggling to build momentum despite strong institutional demand. According to Bitfinex analysts, short-term holders are selling into strength, offsetting fresh demand from ETF buyers. The analysts noted that the path of least resistance in the near term is likely consolidation or a pullback towards the $75,000 region, and a decisive break above $80,000 is required to confirm a more durable bullish regime.