The brief surge of Bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's value slipping back to $76,600 during the US trading session as geopolitical concerns resurfaced. 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, also dropped around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital asset market, fell approximately 2% on Monday. The decline is attributed to growing investor caution regarding the outlook for US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a critical global oil transit route.
A proposal by Iran to halt attacks on ships in the strait in exchange for a complete 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 planned envoy to Pakistan for negotiations with the Iranian side. Oil prices continued their ascent, with Brent crude oil rising over 3% to $107 per barrel and West Texas Intermediate crude oil increasing 2.6% to $97.
The Nasdaq declined 0.3% in morning trading, pulling back 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, with Coinbase shares falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Underlying bitcoin's price action is a market struggling to gain momentum despite robust institutional demand.
Bitfinex analysts observed that short-term bitcoin holders in profit have been selling, offsetting fresh demand from ETF buyers and investment strategies. The analysts 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 trend.