The bitcoin price surge towards $80,000 was short-lived, as it dropped to $76,600 during the US trading session on Monday due to escalating geopolitical tensions. After reaching its highest level since early February, near $80,000, the largest cryptocurrency reversed direction, falling around 1.5% over 24 hours.
Major altcoins, including ether, XRP, and solana, also declined, each losing about 3%, while the CoinDesk 20 Index fell 2% on Monday. The pullback is attributed to investor caution regarding US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a crucial 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, including the lifting of the US naval blockade and delayed nuclear talks, aims to restart stalled negotiations, but uncertainty remains high.
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, pulling back from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week. Crypto-linked stocks also declined, with Coinbase falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. According to Bitfinex analysts, short-term bitcoin holders have been 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 required to confirm a more durable bullish regime.