The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency retreating to $76,600 during the US trading session as concerns over Iran and rising oil prices resurfaced. Following an overnight high near $80,000, its highest point since early February, bitcoin reversed direction and declined by about 1.5% over 24 hours.
Major alternative cryptocurrencies, including ether, XRP, and solana, each dropped around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, fell approximately 2% on Monday. The downturn is attributed to growing investor caution regarding US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a critical global oil transit route. A proposal by Iran to cease attacks on ships in the strait in exchange for a comprehensive end to the conflict, including the lifting of the US naval blockade and a delay in nuclear talks, aims to revive stalled negotiations. However, uncertainty persists after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran.
Oil prices continued their ascent, with Brent crude oil rising over 3% to $107 a barrel and West Texas Intermediate crude oil increasing 2.6% to $97. The Nasdaq declined 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week. Stocks linked to cryptocurrencies also declined, with Coinbase, Circle, and Galaxy Digital experiencing drops.
Underlying bitcoin's price movement is a market struggling to gain momentum despite robust institutional demand. Bitfinex analysts observed that short-term bitcoin holders are selling their profits, offsetting new demand from ETF buyers and investment strategies.
According to the analysts, the most likely near-term scenario is consolidation or a pullback towards the $75,000 region, with a decisive break above $80,000 needed to confirm a more lasting bullish trend.