Bitcoin's push towards $80,000 was short-lived, as the cryptocurrency's price slipped back to $76,600 during the US trading session on Monday, amid growing geopolitical concerns. After reaching its highest level since early February, near $80,000, bitcoin reversed direction, posting a 1.5% decline over 24 hours.
Major altcoins, including ether, XRP, and solana, followed suit, each dropping around 3%, while the CoinDesk 20 Index fell 2% on Monday. The pullback is attributed to investor caution regarding US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical oil transit route. According to reports, Iran has proposed a halt to attacks on ships in the strait in exchange for a full end to the war, including the lifting of the US naval blockade and delayed nuclear talks.
However, uncertainty remains high after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran. Meanwhile, oil prices continued to rise, with Brent crude climbing over 3% to $107 a barrel and West Texas Intermediate crude up 2.6% to $97. The Nasdaq edged 0.3% lower, retreating from recent record highs, while the S&P 500 was 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. Bitfinex analysts observed that short-term bitcoin holders are selling into strength, offsetting fresh demand from ETF buyers and Strategy. They predict that the near-term path of least resistance is likely consolidation or a pullback towards the $75,000 region, requiring a decisive break above $80,000 to confirm a more durable bullish trend.