Bitcoin's push towards $80,000 was short-lived, as the cryptocurrency's price slipped back to $76,600 during Monday's US trading session, influenced by escalating geopolitical tensions. Following an overnight high 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 digital assets benchmark, fell 2% on Monday. The downturn coincides with growing investor caution regarding US-Iran negotiations and disruptions to the Strait of Hormuz, a crucial global oil transit route.
A recent proposal by Iran to cease 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 revive stalled negotiations. However, uncertainty persists after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran. Oil prices continued to rise, with Brent crude climbing over 3% to $107 a barrel and West Texas Intermediate crude up 2.6% to $97. The Nasdaq edged 0.3% lower, retreating from recent record highs, while the S&P 500 was flat ahead of a significant earnings week.
Crypto-related stocks 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. 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 durable bullish trend.