Bitcoin's push towards $80,000 was short-lived on Monday, with the cryptocurrency's price slipping back to $76,600 during the US trading session, as concerns over geopolitical tensions resurfaced. After reaching a high of nearly $80,000 overnight, its highest level since early February, bitcoin reversed direction and dropped around 1.5% over the past 24 hours.
Major altcoins also followed suit, with ether, XRP, and solana each declining by approximately 3%. The CoinDesk 20 Index, a benchmark for the broader digital assets market, fell roughly 2% on Monday.
The pullback occurs as investors become increasingly cautious about the outlook for US-Iran negotiations and the ongoing disruption to 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 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 plans to send 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 by 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 featuring major firms such as Alphabet, Meta, Microsoft, and Apple. Meanwhile, crypto-linked stocks declined across the board, 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 robust institutional demand. Bitfinex analysts observed that short-term bitcoin holders in profit have been selling into strength, offsetting fresh demand from ETF buyers and Strategy. According to the analysts, the near-term path of least resistance is likely consolidation or a pullback towards the $75,000 region, and a decisive break above $80,000 is required to confirm a more durable bullish regime.