The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price slipping to $76,600 during the US trading session, as global tensions and rising oil prices took center stage. 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, followed suit, each falling around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, dropped 2% on Monday.
The downturn comes as investors become increasingly cautious about the outlook for 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 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 plans to send envoys to Pakistan for negotiations with the Iranian side. Oil prices continued their ascent, with Brent crude oil prices climbing over 3% to $107 a barrel and West Texas Intermediate crude oil 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. Crypto-linked stocks also declined, with shares of crypto exchange Coinbase 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 observed that short-term bitcoin holders are selling into strength, offsetting fresh demand from ETF buyers. The analysts predict that the near-term path of least resistance is likely consolidation or a pullback toward the $75,000 region, requiring a decisive break above $80,000 to confirm a more durable bullish trend.