The brief surge of Bitcoin towards $80,000 lost momentum on Monday, with the price dropping back to $76,600 during the US trading session as concerns over geopolitical stability resurfaced. Following an overnight high near $80,000, its highest point since early February, the cryptocurrency reversed direction, declining by about 1.5% over 24 hours. Major alternative coins, including Ether, XRP, and Solana, also fell by around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital asset market, slipped by approximately 2% on Monday. The decline comes as investors become increasingly cautious about the prospects of 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 postponement of nuclear talks. This proposal aims to revive stalled negotiations, but uncertainty remains high after President Trump canceled the 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 by over 3% to $107 per barrel, and West Texas Intermediate crude oil increasing by 2.6% to $97. The Nasdaq dipped by 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week that includes major firms such as Alphabet, Meta, Microsoft, and Apple.
Meanwhile, stocks linked to cryptocurrency declined across the board, with shares of crypto exchange Coinbase falling by 1.5%, Circle, the issuer of the USDC stablecoin, dropping by 3.5%, and Galaxy Digital, a digital asset investment firm, sliding by 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 Strategy. 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.