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 regained attention. Following an overnight trade near $80,000, its highest since early February, the largest cryptocurrency reversed direction, posting a 1.5% decline over 24 hours. Major altcoins, including ether, XRP, and solana, each dropped around 3%, while the CoinDesk 20 Index fell 2% on Monday.
The pullback is attributed to growing investor caution over US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a crucial global oil transit route. According to reports, Iran has proposed a halt to attacks on ships in the strait in exchange for a complete end to the war, but uncertainty remains high. Oil prices continued their ascent, with Brent crude rising 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 remained flat ahead of a significant earnings week.
Crypto-linked stocks also declined, with Coinbase, Circle, and Galaxy Digital shares falling 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. They noted 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.