The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price slipping back to $76,600 during US trading hours as geopolitical concerns regained attention. After nearing $80,000 overnight, its highest level since early February, bitcoin reversed direction and declined about 1.5% over 24 hours. Major alternative cryptocurrencies followed suit, with declines of around 3% for ether, XRP, and solana, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, fell approximately 2% on Monday. The pullback comes amidst growing investor caution regarding US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a crucial global oil transit route.
According to a report, 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 delaying nuclear talks. However, uncertainty remains high after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran. 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 in morning trading, retreating from recent record highs, while the S&P 500 was flat ahead of a significant earnings week. Meanwhile, stocks linked to cryptocurrency declined, with Coinbase falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%.
Underlying bitcoin's price action is a market struggling to gain momentum despite strong institutional demand. Bitfinex analysts noted that short-term bitcoin holders are selling into strength, offsetting new demand from ETF buyers. The near-term path of least resistance is likely consolidation or a pullback towards $75,000, with a decisive break above $80,000 required to confirm a more durable bullish trend.