The brief surge of bitcoin towards $80,000 lost steam on Monday, with the cryptocurrency's value slipping to $76,600 during US trading hours as geopolitical concerns resurfaced. Following an overnight peak near $80,000, its highest level since early February, bitcoin reversed its course, experiencing a 1.5% decline over 24 hours.
Major alternative cryptocurrencies, including ether, XRP, and solana, each dropped around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital asset market, fell approximately 2% on Monday. This pullback is attributed to growing investor caution regarding the outlook for US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a critical global oil transit route. According to reports, Iran has proposed a ceasefire in the strait in exchange for a complete end to the war, including the lifting of the US naval blockade and a delay in nuclear talks, aiming to restart stalled negotiations. However, uncertainty remains high after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran.
Oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 a barrel and West Texas Intermediate crude oil increasing 2.6% to $97. The Nasdaq declined 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week featuring firms like Alphabet, Meta, Microsoft, and Apple. Meanwhile, stocks linked to cryptocurrency declined across the board, with Coinbase shares 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 observe that short-term bitcoin holders are selling into strength, offsetting fresh demand from ETF buyers. The analysts predict that the path of least resistance in the near term is likely 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.