Bitcoin's brief surge towards $80,000 lost steam on Monday, with the cryptocurrency's price slipping to $76,600 during US trading hours as geopolitical concerns resurfaced. Following an overnight high near $80,000, its highest level since early February, bitcoin reversed direction and declined about 1.5% over 24 hours.
Major alternative cryptocurrencies, including ether, XRP, and solana, also fell, each dropping around 3%, while the CoinDesk 20 Index, a digital assets market benchmark, decreased by 2% on Monday. The pullback occurred as investors became 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 complete end to the war, including the lifting of the US naval blockade and delayed nuclear talks, aims to restart stalled negotiations, but 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 climbing over 3% to $107 a barrel and West Texas Intermediate crude up 2.6% to $97.
The Nasdaq declined 0.3% in morning trading, pulling back from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week. Meanwhile, crypto-related stocks declined, with Coinbase shares falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Bitfinex analysts observed that short-term bitcoin holders selling into strength offset fresh demand from ETF buyers, suggesting a near-term path of consolidation or a pullback towards the $75,000 region, with a decisive break above $80,000 required to confirm a more durable bullish trend.