The brief surge of bitcoin towards $80,000 lost momentum on Monday, with prices falling back to $76,600 during the US trading session, as geopolitical concerns resurfaced. After nearing $80,000 overnight, its highest level since early February, the largest cryptocurrency reversed direction, posting a 1.5% decline over 24 hours. Major alternative cryptocurrencies followed suit, with ether, XRP, and solana each plummeting around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, fell approximately 2% on Monday. The pullback occurs 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.
According to a Wall Street Journal report, Iran has proposed ceasing attacks on ships in the strait in exchange for a comprehensive end to the war, including the lifting of the US naval blockade and postponing nuclear talks. The proposal aims to revive stalled negotiations, but uncertainty remains high after President Trump canceled the dispatch of envoys to Pakistan for negotiations with the Iranian side on Saturday. Oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 per barrel and West Texas Intermediate crude oil increasing 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 featuring major firms such as Alphabet, Meta, Microsoft, and Apple.
Meanwhile, stocks linked to cryptocurrencies declined across the board, with shares of crypto exchange Coinbase falling 1.5%, Circle, the issuer of the USDC stablecoin, dropping 3.5%, and Galaxy Digital, a digital asset investment firm, 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 strategic investors. 'The path of least resistance in the near term is likely consolidation or a pullback toward the $75,000 region,' the analysts stated, adding that 'a decisive break above $80,000 is required to confirm a more durable bullish regime.'