The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency slipping to $76,600 during the US trading session as concerns over geopolitical tensions resurfaced. Following an overnight high near $80,000, its highest level since early February, bitcoin reversed direction, declining by approximately 1.5% over the past 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 assets market, fell by about 2% on Monday.
This pullback occurs as investors become increasingly cautious about the outlook for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. A proposal by Iran to halt attacks on ships in the strait in exchange for a full end to the war, including the lifting of the US naval blockade and a delay in nuclear talks, aims to restart stalled negotiations.
However, uncertainty remains high after President Trump canceled the planned envoy to Pakistan for negotiations with the Iranian side. Oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 a barrel and West Texas Intermediate crude oil increasing by 2.6% to $97. The Nasdaq edged 0.3% lower in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week featuring prominent firms such as Alphabet, Meta, Microsoft, and Apple.
Crypto-linked stocks declined across the board, with shares of crypto exchange Coinbase falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Bitfinex analysts observed that short-term bitcoin holders who are in profit have been selling into strength, offsetting fresh demand from ETF buyers and Strategy. According to the analysts, the near-term path of least resistance 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.