Bitcoin's brief surge toward $80,000 lost momentum on Monday, with the cryptocurrency's price declining to $76,600 during the US trading session as geopolitical concerns resurfaced. After reaching a high of nearly $80,000 overnight, its highest level since early February, bitcoin reversed direction and fell approximately 1.5% over the past 24 hours.
Major alternative cryptocurrencies followed suit, with ether, XRP, and solana each declining around 3%. The CoinDesk 20 Index, a benchmark for the broader digital assets market, fell about 2% on Monday. The pullback occurs as investors become cautious about the prospects for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a crucial 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 sending envoys to Pakistan for negotiating with the Iranian side over the weekend. Oil prices continued to rise, with Brent crude oil prices climbing more than 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 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 build momentum despite strong institutional demand. Bitfinex analysts noted that short-term bitcoin holders have been 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 regime.