Bitcoin's push towards $80,000 was short-lived on Monday, as the cryptocurrency's price slipped back to $76,600 during the US trading session, driven by escalating geopolitical tensions. After reaching its highest level since early February, near $80,000, bitcoin reversed direction and fell about 1.5% over 24 hours. Major alternative cryptocurrencies, including ether, XRP, and solana, also declined, each falling around 3%, while the CoinDesk 20 Index dropped approximately 2% on Monday.
The retreat comes as investors grow cautious about the outlook for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a crucial global oil transit route. According to a report, Iran has proposed halting 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. However, uncertainty remains high after President Trump canceled sending envoys to Pakistan for negotiations with Iran.
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, pulling back from recent record highs, while the S&P 500 was flat, ahead of a significant earnings week.
Meanwhile, crypto-linked stocks declined, with shares of Coinbase falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Under the surface, bitcoin's price action suggests a market struggling to build momentum despite strong institutional demand. Bitfinex analysts noted that short-term bitcoin holders have been selling into strength, offsetting fresh demand from ETF buyers. The analysts believe 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.