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. Following an overnight peak near $80,000, its highest since early February, the cryptocurrency reversed direction and declined approximately 1.5% over 24 hours. Major alternative coins, including ether, XRP, and solana, each fell around 3%, while the CoinDesk 20 Index, a digital assets market benchmark, dropped about 2% on Monday.
The downturn occurs as investors become cautious about the prospects of US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a critical global oil transit route. A recent proposal by Iran to cease 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 revive stalled negotiations, although uncertainty remains high after President Trump canceled plans to send envoys to Pakistan for talks with the Iranian side. 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 in morning trading, retreating from recent record highs, while the S&P 500 remained 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%.
Beneath the surface, bitcoin's price action suggests a market struggling to gain momentum despite robust institutional demand. Bitfinex analysts observed 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.