The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the price slipping to $76,600 during the US trading session as geopolitical tensions regained attention. After approaching $80,000 overnight, its highest level since early February, the largest cryptocurrency changed direction, falling about 1.5% over the past 24 hours.
Major alternative cryptocurrencies followed suit, with ether, XRP, and solana each declining around 3%. The CoinDesk 20 Index, a benchmark for the broader digital asset market, fell about 2% on Monday. The pullback occurs as investors become cautious about the outlook for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. A 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 more than 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, stocks linked to cryptocurrency declined across the board, with Coinbase, Circle, and Galaxy Digital experiencing declines. Under the surface, bitcoin's price action suggests 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. The analysts believe the path of least resistance in the near term is likely consolidation or a pullback toward the $75,000 region, requiring a decisive break above $80,000 to confirm a more durable bullish regime.