The brief push towards $80,000 by bitcoin (BTC) was short-lived, as the cryptocurrency's price slipped back to $76,600 during the US trading session on Monday, amid escalating geopolitical tensions. Following an overnight trade near $80,000, its highest level since early February, the largest cryptocurrency reversed its course, posting a 1.5% decline over the past 24 hours.
Major altcoins, including ether (ETH), XRP, and solana (SOL), followed suit, each plummeting around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, fell approximately 2% on Monday. This downturn coincides with growing investor caution regarding the outlook for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. A recent Wall Street Journal report revealed that 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 this proposal aims to restart stalled negotiations, uncertainty persists after President Trump canceled the planned dispatch of envoys to Pakistan for negotiations with the Iranian side over the weekend.
Meanwhile, oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 a barrel, while West Texas Intermediate crude oil climbed 2.6% to $97. The Nasdaq dipped 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat, ahead of a significant earnings week featuring prominent firms such as Alphabet, Meta, Microsoft, and Apple. Crypto-linked stocks also declined across the board, with shares of crypto exchange Coinbase (COIN) falling 1.5%, while Circle (CRCL), the issuer of the USDC stablecoin, dropped 3.5%, and Galaxy Digital (GLXY), a digital asset investment firm, slid nearly 6%. Underlying the surface, bitcoin's price action suggests a market struggling to build momentum despite robust institutional demand.
According to Bitfinex analysts, short-term BTC holders who are in profit have been selling into strength, offsetting fresh demand from ETF buyers and Strategy (MSTR). The analysts noted 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.'