Bitcoin's brief foray toward $80,000 on Monday was short-lived, as the cryptocurrency's price slipped back to $76,600 during the US trading session, influenced by resurgent geopolitical concerns. After nearing $80,000 overnight, its highest point since early February, bitcoin reversed direction, declining approximately 1.5% 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, decreased about 2% on Monday.
The retreat is attributed to growing investor caution regarding US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. A Wall Street Journal report revealed that Iran has proposed a cessation of attacks on ships in the strait in exchange for a comprehensive end to the war, including the lifting of the US naval blockade and a delay in nuclear talks.
Although the proposal aims to restart stalled negotiations, uncertainty persists following President Trump's cancellation of envoy dispatch to Pakistan for negotiations with Iran. Oil prices continued their ascent, with Brent crude oil rising over 3% to $107 per barrel and West Texas Intermediate crude oil increasing 2.6% to $97.
The Nasdaq dipped 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week featuring companies like Alphabet, Meta, Microsoft, and Apple. Crypto-related stocks declined across the board, with Coinbase shares 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 in profit have been selling into strength, offsetting fresh demand from ETF buyers and Strategy. The analysts noted that the most likely near-term path is consolidation or a pullback toward the $75,000 region, adding that a decisive break above $80,000 is necessary to confirm a more durable bullish regime.