The brief surge of Bitcoin towards $80,000 lost steam on Monday, with the cryptocurrency's value dropping to $76,600 during the US trading session as geopolitical concerns regained prominence. Following an overnight trade near $80,000, its highest level since early February, Bitcoin reversed direction, posting a 1.5% decline over 24 hours. Major alternative cryptocurrencies, including Ether, XRP, and Solana, also fell by approximately 3%, while the CoinDesk 20 Index decreased by 2% on Monday.
This downturn is attributed to growing investor caution regarding the outlook for US-Iran negotiations and the ongoing disruptions to the Strait of Hormuz, a vital global oil transit route. As reported by The Wall Street Journal, Iran has proposed a cessation of attacks on ships in the strait in exchange for a comprehensive end to the war, including the lifting of the US naval blockade and a delay in nuclear talks.
Although this proposal aims to restart stalled negotiations, uncertainty persists after President Trump canceled the dispatch of envoys to Pakistan for negotiations with the Iranian side. Oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 per barrel and West Texas Intermediate crude oil increasing 2.6% to $97.
The Nasdaq experienced a 0.3% decline in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week featuring companies such as Alphabet, Meta, Microsoft, and Apple. Concurrently, crypto-related stocks declined across the board, with shares of crypto exchange Coinbase falling 1.5%, Circle dropping 3.5%, and Galaxy Digital sliding nearly 6%. Beneath the surface, Bitcoin's price action suggests a market struggling to gain momentum despite robust institutional demand. Bitfinex analysts observed that short-term Bitcoin holders in profit have been selling into strength, offsetting fresh demand from ETF buyers and other investors.
The analysts noted that the most likely near-term trajectory is consolidation or a pullback towards the $75,000 region, adding that a decisive break above $80,000 is necessary to confirm a more durable bullish trend.