The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency slipping back to $76,600 during the US trading session, as concerns over geopolitical tensions resurfaced. After nearing $80,000 overnight, its highest point since early February, bitcoin reversed direction, posting a 1.5% decline over 24 hours. Major alternative cryptocurrencies followed suit, with ether, XRP, and solana each experiencing a 3% drop.
The CoinDesk 20 Index, a benchmark for the broader digital asset market, fell by approximately 2% on Monday. The pullback occurs amidst growing investor caution regarding the outlook for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. A recent proposal by Iran to halt attacks on ships in the strait in exchange for a complete end to the war, including the lifting of the US naval blockade and delayed nuclear talks, aims to restart stalled negotiations.
However, uncertainty persists after President Trump canceled plans to send envoys to Pakistan for negotiations with the Iranian side. Oil prices continued their ascent, with Brent crude oil rising over 3% to $107 per 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 major firms such as Alphabet, Meta, Microsoft, and Apple.
Meanwhile, stocks linked to cryptocurrencies declined across the board, with Coinbase shares falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Beneath the surface, bitcoin's price action suggests 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 MicroStrategy. The analysts noted 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 required to confirm a more durable bullish trend.