The surge in bitcoin prices towards $80,000 was short-lived, as the cryptocurrency slipped back to $76,600 during the US trading session on Monday, with geopolitical concerns resurfacing. After reaching its highest level since early February, near $80,000, bitcoin reversed direction, posting a 1.5% decline over 24 hours. Major altcoins, including ether, XRP, and solana, each fell around 3%, while the CoinDesk 20 Index, a benchmark for digital assets, dropped 2% on Monday.
The pullback is attributed to growing investor caution regarding US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. A recent proposal by Iran to halt attacks on ships in the strait in exchange for a full end to the war has introduced uncertainty, particularly after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran.
Oil prices continued to rise, with Brent crude oil climbing over 3% to $107 a barrel and West Texas Intermediate crude oil up 2.6% to $97. The Nasdaq edged 0.3% lower, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week. Crypto-linked stocks also declined, with Coinbase, Circle, and Galaxy Digital experiencing losses of 1.5%, 3.5%, and nearly 6%, respectively.
Underlying bitcoin's price action is a market struggling to gain momentum despite strong institutional demand. Bitfinex analysts observed that short-term BTC holders are selling into strength, offsetting fresh demand from ETF buyers. The analysts predict 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 necessary to confirm a more durable bullish trend.