The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the price retreating to $76,600 during the US trading session as concerns over Iran and rising oil prices regained prominence. After nearing $80,000 overnight, its highest point since early February, the cryptocurrency reversed its trajectory, declining by approximately 1.5% over the past day. Major altcoins such as ether, XRP, and solana followed suit, each dropping around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, fell by about 2% on Monday. This pullback occurs as investors become increasingly cautious about the prospects of US-Iran negotiations and the ongoing disruption to 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 a delay in nuclear talks, aims to restart stalled negotiations. However, uncertainty persists after President Trump canceled the planned visit of US envoys 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 by 2.6% to $97.
The Nasdaq declined by 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week. Meanwhile, stocks linked to the crypto sector 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 noted that short-term bitcoin holders are selling into strength, offsetting new demand from ETF buyers.
The analysts predict that the path of least resistance in the near term is likely consolidation or a pullback towards the $75,000 region, emphasizing that a decisive break above $80,000 is necessary to confirm a more durable bullish trend.