The brief push by bitcoin towards the $80,000 mark lost steam on Monday, with the cryptocurrency's value slipping to $76,600 during the US trading session, as concerns over global tensions resurfaced. Following an overnight trading session near $80,000, its highest point since early February, bitcoin reversed its course, experiencing a decline of approximately 1.5% over the past 24 hours.
Major alternative cryptocurrencies, including ether, XRP, and solana, also fell, each declining around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, dropped about 2% on Monday. The decline in bitcoin's value comes as investors become increasingly cautious about the prospects of US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a crucial global oil transit route. According to a report by the Wall Street Journal, Iran has proposed a cessation of attacks on ships in the strait in exchange for a comprehensive end to the war, including the lifting of the US naval blockade and a delay in nuclear talks.
Although this proposal aims to restart stalled negotiations, uncertainty remains high after President Trump canceled the planned dispatch of envoys to Pakistan for negotiations with the Iranian side. Meanwhile, oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 a barrel and West Texas Intermediate crude oil increasing by 2.6% to $97. The Nasdaq experienced a 0.3% decline in morning trading, pulling back from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week featuring prominent firms such as Alphabet, Meta, Microsoft, and Apple. Crypto-related stocks also declined, with shares of crypto exchange Coinbase 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 who are in profit have been selling into strength, offsetting fresh demand from ETF buyers and other investors. According to the analysts, the most likely path for the near term is 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.