The brief surge of bitcoin towards $80,000 lost momentum on Monday, with prices declining to $76,600 during the US trading session as geopolitical concerns resurfaced. Following an overnight high near $80,000, its highest point since early February, the largest cryptocurrency reversed direction, posting a 1.5% decline over 24 hours. Major altcoins, including ether, XRP, and solana, each dropped around 3%, while the CoinDesk 20 Index fell approximately 2% on Monday.
The downturn occurs amidst growing investor caution regarding US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a critical global oil transit route. Iran has proposed a ceasefire on ships in the strait in exchange for a complete end to the war, including the lifting of the US naval blockade and delayed nuclear talks, according to a Wall Street Journal report.
However, uncertainty remains high after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran. Oil prices continued to climb, with Brent crude oil rising over 3% to $107 per barrel and West Texas Intermediate crude oil increasing 2.6% to $97.
The Nasdaq edged down 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week featuring companies like Alphabet, Meta, Microsoft, and Apple. Meanwhile, crypto-linked stocks declined, 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 gain momentum despite robust institutional demand.
Bitfinex analysts observed that short-term bitcoin holders are selling into strength, offsetting new demand from ETF buyers and Strategy. The analysts noted that the most likely near-term path is consolidation or a pullback towards the $75,000 region, adding that a decisive break above $80,000 is necessary to confirm a more durable bullish trend.