Bitcoin's brief push towards $80,000 lost momentum on Monday, with the cryptocurrency's price retreating to $76,600 during the US trading session, as concerns over Iran and rising oil prices regained attention. Following an overnight high near $80,000, its highest point since early February, bitcoin reversed direction, dropping about 1.5% over 24 hours.
Major alternative cryptocurrencies like ether, XRP, and solana followed, each declining around 3%, while the CoinDesk 20 Index fell 2% on Monday. The retreat comes as investors become cautious about the outlook for US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a critical global oil transit route. According to reports, Iran has proposed a ceasefire in the strait in exchange for a complete end to the war, including the lifting of the US naval blockade and a delay in nuclear talks, aiming to restart stalled negotiations. However, uncertainty remains after President Trump canceled plans to send envoys to Pakistan for talks with Iran.
Oil prices continued to climb, with Brent crude rising over 3% to $107 a barrel and West Texas Intermediate crude up 2.6% to $97. The Nasdaq edged 0.3% lower, pulling back from recent record highs, while the S&P 500 was flat ahead of a significant earnings week. Crypto-related stocks also declined, with Coinbase falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%.
Underneath 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 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, requiring a decisive break above $80,000 to confirm a more durable bullish trend.