The brief surge of bitcoin towards $80,000 lost momentum on Monday, with prices dropping to $76,600 during the US session as geopolitical concerns regained attention. After reaching its highest level since early February, near $80,000, the largest cryptocurrency reversed direction, posting a 1.5% decline over 24 hours.
Major altcoins followed suit, with ether, XRP, and solana each plummeting around 3%, while the CoinDesk 20 Index fell approximately 2% on Monday. The pullback is attributed to growing investor caution regarding US-Iran negotiations and the ongoing disruption of the Strait of Hormuz, a critical 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 delaying nuclear talks, aims to restart stalled negotiations but has left uncertainty high.
Oil prices continued to rise, with Brent crude oil climbing over 3% to $107 a barrel and West Texas Intermediate crude oil increasing 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 Coinbase, Circle, and Galaxy Digital sliding 1.5%, 3.5%, and nearly 6%, respectively.
Underlying bitcoin's price action is a market struggling to build momentum despite robust institutional demand. Bitfinex analysts observed that short-term BTC holders are selling into strength, offsetting fresh demand from ETF buyers and Strategy. The analysts noted 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 required to confirm a more durable bullish regime.