The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price sliding back to $76,600 during the US trading session as geopolitical concerns regained prominence. 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 altcoins, including ether, XRP, and solana, also experienced declines, each falling around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, dropped about 2% on Monday. This pullback occurs as investors become increasingly cautious about the outlook for US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a crucial global oil transit route. A recent 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 negotiating with the Iranian side. Oil prices continued their ascent, with Brent crude oil prices climbing over 3% to $107 a barrel and West Texas Intermediate crude oil rising 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.
Meanwhile, stocks linked to the crypto sector declined, with shares of crypto exchange Coinbase falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Underlying bitcoin's price action is a market struggling to build momentum despite strong institutional demand. Bitfinex analysts observed that short-term bitcoin holders in profit have been selling into strength, offsetting fresh demand from ETF buyers and strategic investors.
The analysts noted that the path of least resistance in the near term is likely consolidation or a pullback towards the $75,000 region, adding that a decisive break above $80,000 is required to confirm a more durable bullish regime.