The brief push towards $80,000 by bitcoin, trading as BTC $79,854.07, was short-lived on Monday, as prices dipped to $76,600 during the US trading session, driven by escalating geopolitical concerns. Following an overnight trade near $80,000, the highest since early February, the largest cryptocurrency reversed direction, dropping about 1.5% over 24 hours. Major alternative cryptocurrencies, including ether (ETH), XRP, and solana (SOL), each declined around 3%, while the CoinDesk 20 Index, a benchmark for broader digital assets, fell approximately 2% on Monday. The retreat is attributed to growing investor caution regarding US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a critical global oil transit route.
According to a Wall Street Journal report, Iran has proposed a ceasefire 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. This proposal aims to revive stalled negotiations; however, uncertainty remains high after President Trump canceled the dispatch of envoys to Pakistan for negotiations with the Iranian side over the weekend.
Oil prices continued their ascent, with Brent crude oil rising over 3% to $107 a barrel and West Texas Intermediate crude oil up 2.6% to $97. The Nasdaq slipped 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week featuring tech giants like Alphabet, Meta, Microsoft, and Apple. Crypto-linked stocks also declined, with Coinbase (COIN) shares falling 1.5%, Circle (CRCL), the issuer of the USDC stablecoin, dropping 3.5%, and Galaxy Digital (GLXY), 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.
Analysts at Bitfinex observed that short-term bitcoin holders in profit have been selling into strength, counterbalancing fresh demand from ETF buyers and Strategy (MSTR). The analysts stated, 'The path of least resistance in the near term is likely consolidation or a pullback toward the $75,000 region,' adding that 'a decisive break above $80,000 [is] required to confirm a more durable bullish regime.'