The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price falling back to $76,600 during the US trading session, as concerns over Iran and rising oil prices resurfaced. 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, followed suit, each dropping around 3%, while the CoinDesk 20 Index, a benchmark for digital assets, fell 2% on Monday.
The retreat is attributed to growing investor caution regarding US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a crucial global oil transit route. Iran has proposed a ceasefire in exchange for a full end to the war, including the lifting of the US naval blockade and a delay in nuclear talks, aiming to restart stalled negotiations. 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 rising over 3% to $107 a barrel and West Texas Intermediate crude 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 declined, with Coinbase, Circle, and Galaxy Digital falling 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 holders are selling into strength, offsetting new demand from ETF buyers. The analysts predict that the near-term path of least resistance is likely consolidation or a pullback towards the $75,000 region, requiring a decisive break above $80,000 to confirm a more sustainable bullish trend.