The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's value slipping to $76,600 during the US trading session as geopolitical tensions regained prominence. Following an overnight trade near $80,000, its highest point since early February, bitcoin reversed its course, experiencing a 1.5% decline over 24 hours. Major altcoins, including ether, XRP, and solana, each dropped around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, fell approximately 2% on Monday.
The downturn is attributed to growing investor caution regarding US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical 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 delayed 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 featuring firms like Alphabet, Meta, Microsoft, and Apple. Meanwhile, crypto-linked stocks declined across the board, with Coinbase shares 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 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 strategic investors. According to the analysts, the near-term path of least resistance 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.