The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the price retreating to $76,600 during the US trading session, as geopolitical concerns regained prominence. After reaching its highest level since early February, near $80,000, the largest cryptocurrency reversed its course, declining approximately 1.5% over the past 24 hours. Major altcoins followed suit, with ether, XRP, and solana each experiencing a decline of around 3%. The CoinDesk 20 Index, a benchmark for the broader digital assets market, fell about 2% on Monday.
The pullback is attributed to growing investor cautiousness regarding the outlook for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a crucial 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 the West Texas Intermediate crude oil rising 2.6% to $97. The Nasdaq edged 0.3% lower in morning trading, pulling back from recent record highs, while the S&P 500 remained flat, ahead of a significant earnings week. Meanwhile, crypto-linked stocks declined, with shares of crypto exchange Coinbase falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%.
Underlying bitcoin's price action is a market struggling to build momentum despite strong institutional demand. Bitfinex analysts noted that short-term BTC holders selling into strength are offsetting fresh demand from ETF buyers and Strategy. The analysts predict that the path of least resistance in the near term is likely consolidation or a pullback toward the $75,000 region, adding that a decisive break above $80,000 is required to confirm a more durable bullish regime.