The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price declining to $76,600 during the US trading session, as geopolitical concerns resurfaced. Following an overnight high near $80,000, its highest level since early February, bitcoin reversed direction, posting a 1.5% decline over 24 hours.
Major alternative cryptocurrencies, including ether, XRP, and solana, each fell around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, slipped 2% on Monday. The pullback occurs amidst growing investor caution regarding US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route.
According to a Wall Street Journal report, Iran has proposed a ceasefire in exchange for a complete end to the war, including the lifting of the US naval blockade and a delay in nuclear talks. However, uncertainty remains high after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran.
Oil prices continued their ascent, with Brent crude climbing over 3% to $107 a barrel and West Texas Intermediate crude rising 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.
Meanwhile, stocks linked to cryptocurrencies declined, with Coinbase 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 towards the $75,000 region, adding that a decisive break above $80,000 is necessary to confirm a more durable bullish trend.