The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price slipping to $76,600 during the US trading session as concerns over geopolitical tensions resurfaced. Following an overnight high near $80,000, its highest level since early February, bitcoin reversed direction and declined by approximately 1.5% over 24 hours.
Major alternative cryptocurrencies, including ether, XRP, and solana, each fell around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, dropped about 2% on Monday. The decline comes as investors become increasingly cautious about the prospects for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. According to a report by The Wall Street Journal, 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.
This proposal aims to restart stalled negotiations, but uncertainty remains high after President Trump canceled the planned dispatch of envoys 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 retreated 0.3% in morning trading, pulling back from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week featuring companies like Alphabet, Meta, Microsoft, and Apple.
Meanwhile, stocks linked to the cryptocurrency sector declined across the board, with shares of crypto exchange Coinbase falling 1.5%, Circle, the issuer of the USDC stablecoin, dropping 3.5%, and Galaxy Digital, a digital asset investment firm, 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.
The analysts noted that the most likely near-term path is consolidation or a pullback towards the $75,000 region, adding that a decisive break above $80,000 is necessary to confirm a more durable bullish trend.