The brief surge of bitcoin towards $80,000 was short-lived, as prices retreated to $76,600 during the US trading session on Monday, influenced by escalating geopolitical tensions. After reaching its highest level since early February, near $80,000, the largest cryptocurrency changed direction, posting a 1.5% decline over the past 24 hours.
Major alternative cryptocurrencies, including ether, XRP, and solana, also fell by around 3%. The CoinDesk 20 Index, a benchmark for the digital assets market, dropped approximately 2% on Monday.
Investors are becoming increasingly cautious due to uncertainty surrounding US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. A Wall Street Journal report revealed that 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.
Although the proposal aims to restart stalled negotiations, uncertainty remains high following President Trump's decision to cancel the dispatch of envoys to Pakistan for negotiations with Iran. Oil prices continued their upward trend, with Brent crude oil prices rising over 3% to $107 per 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 that includes major firms such as Alphabet, Meta, Microsoft, and Apple. Meanwhile, stocks linked to the cryptocurrency sector declined across the board, with shares of crypto exchange Coinbase falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Underlying market dynamics indicate that bitcoin's price action suggests a struggle to build momentum despite strong institutional demand.
According to Bitfinex analysts, short-term bitcoin holders who are in profit have been selling into strength, offsetting new demand from ETF buyers and other strategic investors. The analysts noted that the most likely near-term scenario is consolidation or a pullback towards the $75,000 region, adding that a decisive break above $80,000 is necessary to confirm a more sustainable bullish trend.