The brief push towards $80,000 by bitcoin (BTC) was short-lived, as prices dipped to $76,600 during the US trading session on Monday, amid escalating geopolitical tensions. Following an overnight trade near $80,000, its highest since early February, the largest cryptocurrency reversed direction, posting a 1.5% decline over 24 hours. Major alternative cryptocurrencies, including ether (ETH), XRP, and solana (SOL), also fell, each dropping around 3%. The CoinDesk 20 Index, a benchmark for the broader digital asset market, decreased by 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 Wall Street Journal report revealed that Iran proposed a halt to attacks on ships in the strait in exchange for a full 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 planned envoy to Pakistan for negotiations with Iran on Saturday. Oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 per 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 that includes major firms such as Alphabet, Meta, Microsoft, and Apple. Meanwhile, stocks linked to the crypto sector declined across the board, with Coinbase (COIN) shares falling 1.5%, Circle (CRCL), the issuer of the USDC stablecoin, dropping 3.5%, and Galaxy Digital (GLXY), a digital asset investment firm, sliding nearly 6%. Short-term holders are driving the selling pressure, as those sitting on profits have been selling into the strength, offsetting fresh demand from ETF buyers and strategic investors. According to Bitfinex 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 sustainable bullish trend.