The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency slipping to $76,600 during the US trading session as geopolitical concerns regained prominence. After nearing $80,000 overnight, its highest point since early February, bitcoin reversed direction, falling approximately 1.5% over 24 hours. Major altcoins, including ether, XRP, and solana, followed suit, each dropping around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, decreased by about 2% on Monday. The pullback is attributed to growing investor caution regarding 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 full 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 sending envoys to Pakistan for negotiations with the Iranian side. Oil prices continued their ascent, with Brent crude oil prices rising 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. Crypto-linked stocks also declined, with shares of crypto exchange Coinbase falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Beneath the surface, bitcoin's price action suggests a market struggling to gain momentum despite strong institutional demand. Bitfinex analysts observed that short-term bitcoin holders are selling into strength, offsetting fresh demand from ETF buyers and investment strategies.
The analysts noted that the most likely near-term path is consolidation or a pullback towards the $75,000 region, adding that a decisive break above $80,000 is necessary to confirm a more durable bullish trend.