The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price slipping to $76,600 during the US trading session as geopolitical concerns resurfaced. After reaching its highest level since early February, near $80,000, bitcoin reversed its course, posting a 1.5% decline over 24 hours. Major altcoins, including ether, XRP, and solana, followed suit, each dropping around 3%, while the CoinDesk 20 Index fell 2% on Monday.
The pullback is attributed to growing investor caution regarding US-Iran negotiations and the ongoing disruption in 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 remains high after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran.
Oil prices continued to rise, with Brent crude oil climbing over 3% to $107 a barrel and West Texas Intermediate crude oil increasing 2.6% to $97. The Nasdaq edged 0.3% lower in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week. Meanwhile, crypto-linked stocks declined, with Coinbase, Circle, and Galaxy Digital posting losses. Underlying bitcoin's price action is a market struggling to gain momentum despite strong institutional demand.
Bitfinex analysts observed that short-term bitcoin holders are selling into strength, offsetting new demand from ETF buyers. The analysts predict 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.