The brief surge of bitcoin toward $80,000 lost momentum on Monday, with the cryptocurrency's value slipping to $76,600 during the US trading session, as concerns over geopolitical tensions regained prominence. Following an overnight peak near $80,000, its highest point since early February, bitcoin reversed direction, posting a 1.5% decline over 24 hours. Major alternative cryptocurrencies, including ether, XRP, and solana, each dropped around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital asset market, fell by approximately 2% on Monday. The pullback is attributed to growing investor caution regarding the outlook for US-Iran negotiations and the ongoing disruptions 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 comprehensive end to the war, including the lifting of the US naval blockade and a delay in nuclear talks, aims to restart stalled negotiations. However, uncertainty remains elevated after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran.
Oil prices continued their ascent, with Brent crude climbing over 3% to $107 per barrel and West Texas Intermediate crude rising 2.6% to $97. The Nasdaq dipped 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, stocks linked to the crypto sector declined across the board, with Coinbase shares falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Beneath the surface, bitcoin's price action suggests a market struggling to gain momentum despite robust institutional demand.
Bitfinex analysts observed that short-term bitcoin holders are selling their profits, offsetting fresh demand from ETF buyers and other investors. According to the analysts, the most likely near-term scenario is consolidation or a pullback toward the $75,000 region, with a decisive break above $80,000 required to confirm a more sustainable bullish trend.