The brief surge of bitcoin (BTC) towards $80,000 lost momentum on Monday, with prices dropping to $76,600 during the US trading session as geopolitical tensions resurfaced. Following an overnight high near $80,000, its highest level since early February, the largest cryptocurrency reversed direction, posting a 1.5% decline over 24 hours. Major altcoins, including ether (ETH), XRP, and solana (SOL), followed suit, each falling around 3%, while the CoinDesk 20 Index slid approximately 2% on Monday. The downturn comes as investors become increasingly cautious about the prospects of US-Iran negotiations and the ongoing disruption to 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 delayed nuclear talks, aims to restart stalled negotiations. However, uncertainty remains elevated after President Trump canceled the planned envoy to Pakistan for negotiating with the Iranian side over the weekend. Oil prices continued their ascent, with Brent crude oil climbing over 3% to $107 per 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 featuring major firms such as Alphabet, Meta, Microsoft, and Apple.
Meanwhile, stocks linked to the crypto sector declined across the board, with Coinbase (COIN) shares falling 1.5%, Circle (CRCL) dropping 3.5%, and Galaxy Digital (GLXY) sliding nearly 6%. Underlying bitcoin's price action is 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 new demand from ETF buyers and Strategy (MSTR). According to the analysts, the most likely near-term path is consolidation or a pullback towards the $75,000 region, adding that a decisive break above $80,000 is necessary to confirm a more durable bullish trend.