The brief surge in bitcoin's price toward $80,000 lost momentum on Monday, with the cryptocurrency slipping back to $76,600 during the US trading session as geopolitical concerns resurfaced. After reaching its highest level since early February, near $80,000, bitcoin reversed direction, declining about 1.5% over 24 hours. Major alternative cryptocurrencies, including ether, XRP, and solana, followed suit, each falling around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, declined approximately 2% on Monday.
The pullback is attributed to growing investor caution regarding the outlook for 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, 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 plans to send envoys to Pakistan for negotiations with the Iranian side. 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 in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week. Crypto-linked stocks also declined, with shares of 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 noted that short-term bitcoin 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 toward the $75,000 region, adding that a decisive break above $80,000 is required to confirm a more durable bullish trend.