Bitcoin's surge toward $80,000 was short-lived, as the cryptocurrency's price slipped back to $76,600 during the US session on Monday, influenced by growing geopolitical concerns. After reaching its highest level since early February, near $80,000, bitcoin reversed direction, posting a 1.5% decline over the past 24 hours. Major altcoins, including ether, XRP, and solana, followed suit, each falling around 3%, while the CoinDesk 20 Index dropped approximately 2% on Monday.
The pullback is attributed to investors' increasing cautiousness regarding the outlook for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a crucial global oil transit route. A Wall Street Journal report revealed that Iran has proposed a halt to attacks on ships in the strait in exchange for a full end to the war, including the lifting of the US naval blockade and a delay in nuclear talks. However, uncertainty remains high after President Trump canceled the sending of envoys to Pakistan for negotiations with the Iranian side. 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 decreased 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week. Crypto-linked stocks declined across the board, with Coinbase shares falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Underlying bitcoin's price action is 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 and Strategy.
The analysts predict 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.