The bitcoin rally towards $80,000 was short-lived on Monday, with prices dropping back to $76,600 during the US session as geopolitical concerns regained attention. After reaching nearly $80,000 overnight, its highest level since early February, the largest cryptocurrency reversed direction and declined about 1.5% over the past 24 hours.
Major alternative coins followed suit, with ether, XRP, and solana each falling around 3%. The CoinDesk 20 Index, a benchmark for the broader digital assets market, fell approximately 2% on Monday.
The pullback occurs as investors become cautious about the outlook for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a key global oil transit route. According to a report, Iran has proposed halting attacks on ships in the strait in exchange for a full end to the war, including lifting the US naval blockade and delaying nuclear talks. Oil prices continued to rise, with Brent crude oil prices climbing more than 3% to $107 a barrel, and the West Texas Intermediate crude oil up 2.6% to $97.
The Nasdaq edged 0.3% lower in morning trading, while the S&P 500 was flat, ahead of a significant earnings week. Meanwhile, crypto-linked stocks declined, with shares of crypto exchange Coinbase falling 1.5%, and Circle, the issuer of the USDC stablecoin, dropping 3.5%. Under the surface, bitcoin's price action suggests a market struggling to build momentum despite strong institutional demand.
Bitfinex analysts noted that short-term BTC holders selling into strength are offsetting fresh demand from ETF buyers. The analysts stated that 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.