Bitcoin's brief push toward $80,000 lost momentum on Monday, with the cryptocurrency slipping back to $76,600 during the US trading session as geopolitical concerns regained attention. After reaching its highest level since early February, near $80,000, bitcoin reversed direction and declined approximately 1.5% over the past 24 hours.
Major altcoins, including ether, XRP, and solana, followed suit, each falling around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, dropped about 2% on Monday. The pullback occurs as investors become cautious about the outlook for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a crucial global oil transit route.
A proposal by Iran to halt attacks on ships in the strait in exchange for a full end to the war, including lifting the US naval blockade and delaying nuclear talks, aims to restart stalled negotiations. However, uncertainty remains high after President Trump canceled sending envoys to Pakistan for negotiating with the Iranian side.
Oil prices continued to rise, with Brent crude oil prices climbing more than 3% to $107 a barrel and West Texas Intermediate crude oil up 2.6% to $97. The Nasdaq edged 0.3% lower in morning trading, pulling back from recent record highs, while the S&P 500 was flat, ahead of a significant earnings week. 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%. Under the surface, bitcoin's price action suggests a market struggling to build momentum despite strong institutional demand.
Bitfinex analysts noted that short-term bitcoin holders sitting in profit have been selling into strength, offsetting fresh demand from ETF buyers and Strategy. The analysts believe that the path of least resistance in the near term is likely consolidation or a pullback toward the $75,000 region, adding that a decisive break above $80,000 is required to confirm a more durable bullish regime.