The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency slipping back to $76,600 during the US trading session, as geopolitical concerns resurfaced. Following an overnight trade near $80,000, its highest level since early February, bitcoin reversed its course, posting a 1.5% decline over the past 24 hours.
Major alternative cryptocurrencies, including ether, XRP, and solana, each experienced a decline of approximately 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, fell by about 2% on Monday. The downturn is attributed to growing investor caution regarding the outlook for 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 the proposal aims to restart stalled negotiations, uncertainty remains high after President Trump canceled the dispatch of envoys to Pakistan for negotiations with the Iranian side over the weekend. Oil prices continued their ascent, with Brent crude oil prices climbing over 3% to $107 a barrel and West Texas Intermediate crude oil rising 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 featuring firms such as Alphabet, Meta, Microsoft, and Apple.
Meanwhile, stocks linked to cryptocurrency declined across the board, with Coinbase shares 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 other investors. The analysts noted that the path of least resistance in the near term is likely 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 regime.