The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price slipping to $76,600 during the US trading session as geopolitical concerns resurfaced. After reaching its highest level since early February, near $80,000, bitcoin reversed direction and declined by approximately 1.5% over 24 hours. Major alternative cryptocurrencies followed suit, with ether, XRP, and solana each experiencing a decline of around 3%.
The CoinDesk 20 Index, a benchmark for the broader digital asset market, fell by about 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 report by The Wall Street Journal, Iran has proposed a halt to attacks on ships in the strait in exchange for a complete end to the war, including the lifting of the US naval blockade and a delay in nuclear talks. The proposal aims to restart stalled negotiations, but uncertainty remains high after President Trump canceled the dispatch of envoys to Pakistan for negotiations with the Iranian side. Oil prices continued their ascent, with Brent crude oil prices rising by more than 3% to $107 per barrel, while West Texas Intermediate crude oil increased by 2.6% to $97.
The Nasdaq declined by 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week that includes 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 dropping 3.5%, and Galaxy Digital sliding nearly 6%.
Underlying bitcoin's price action is a market struggling to build 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 other investors. The analysts noted that 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 required to confirm a more durable bullish trend.