The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency slipping to $76,600 during the US trading session as geopolitical concerns resurfaced. Following an overnight trading period near $80,000, its highest point since early February, bitcoin reversed direction, experiencing a 1.5% decline over 24 hours.
Major altcoins, including ether, XRP, and solana, each fell by around 3%, while the CoinDesk 20 Index dropped approximately 2% on Monday. The pullback 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. 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. However, uncertainty remains high after President Trump canceled the dispatch of envoys to Pakistan for negotiations with the Iranian side.
Oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 per barrel and West Texas Intermediate crude oil increasing 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.
Crypto-linked stocks also declined, with Coinbase shares falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Bitfinex analysts observed that short-term bitcoin holders are selling into strength, offsetting fresh demand from ETF buyers and Strategy. They noted 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.