The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's value slipping to $76,600 during the US trading session as concerns over Iran and rising oil prices resurfaced. 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, also fell by around 3%, while the CoinDesk 20 Index, a digital assets market benchmark, dropped 2% on Monday. The downturn is attributed to growing investor caution regarding US-Iran negotiations and the ongoing disruption in 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 complete end to the war, including the lifting of the US naval blockade and delayed nuclear talks, aims to revive stalled negotiations. However, uncertainty remains high after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran. Oil prices continued to rise, with Brent crude oil climbing over 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 was 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 gain momentum despite strong institutional demand.
Bitfinex analysts observed 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, and that a decisive break above $80,000 is necessary to confirm a more durable bullish trend.