The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price slipping back to $76,600 during the US trading session as concerns over geopolitical tensions resurfaced. Following an overnight high near $80,000, its highest point since early February, bitcoin reversed direction, declining about 1.5% over the past 24 hours. Major alternative cryptocurrencies also fell, with ether, XRP, and solana each dropping around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, decreased by approximately 2% on Monday. The pullback occurs as investors become increasingly cautious about the prospects 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 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 remains high after President Trump canceled the dispatch of envoys to Pakistan for negotiations with the Iranian side. Oil prices continued their ascent, with Brent crude oil rising over 3% to $107 a barrel and West Texas Intermediate crude oil increasing by 2.6% to $97. The Nasdaq retreated 0.3% in morning trading, pulling back 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%. Bitfinex analysts observed that short-term bitcoin holders are selling into strength, offsetting new demand from ETF buyers.
The analysts anticipate that the path of least resistance in the near term is likely consolidation or a pullback towards the $75,000 region, noting that a decisive break above $80,000 is necessary to confirm a more durable bullish trend.