The brief surge of bitcoin toward $80,000 lost momentum on Monday, with the price dipping to $76,600 during the US trading session as geopolitical concerns regained prominence. After reaching its highest level since early February, near $80,000, the largest cryptocurrency reversed its course, declining approximately 1.5% over the past day. 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, decreased by about 2% on Monday. The pullback occurs as investors become increasingly cautious about the prospects of US-Iran negotiations and the ongoing disruptions to the Strait of Hormuz, a critical global oil transit route.
According to a report by the Wall Street Journal, Iran has proposed a cessation of 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. Although the proposal aims to restart stalled negotiations, uncertainty persists after President Trump canceled the dispatch of envoys to Pakistan for negotiations with the Iranian side over the weekend. Oil prices continued their ascent, with Brent crude oil prices climbing over 3% to $107 per barrel, while West Texas Intermediate crude oil rose 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 featuring major firms such as Alphabet, Meta, Microsoft, and Apple. Crypto-linked stocks also declined across the board, with shares of crypto exchange Coinbase falling 1.5%, Circle, the issuer of the USDC stablecoin, dropping 3.5%, and Galaxy Digital, a digital asset investment firm, sliding nearly 6%. Beneath the surface, bitcoin's price action suggests a market struggling to build momentum despite robust institutional demand. Bitfinex analysts observed that short-term bitcoin holders in profit have been selling into strength, offsetting fresh demand from ETF buyers and other strategic investors.
According to the analysts, the most likely near-term path is consolidation or a pullback toward the $75,000 region, and a decisive break above $80,000 is necessary to confirm a more durable bullish trend.