The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's value sliding back to $76,600 during the US trading session. This reversal came as geopolitical concerns regained prominence. After nearing $80,000 overnight, its highest point since early February, bitcoin reversed direction, posting a 1.5% decline over 24 hours.
Major altcoins, including ether, XRP, and solana, each dropped around 3%, while the CoinDesk 20 Index fell approximately 2% on Monday. The pullback is attributed to growing investor caution regarding US-Iran negotiations and the ongoing disruption in 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 complete 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 following President Trump's cancellation of envoy talks with the Iranian side. Oil prices continued their ascent, with Brent crude climbing over 3% to $107 a barrel and West Texas Intermediate crude rising 2.6% to $97.
The Nasdaq declined 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat ahead of a significant earnings week. Crypto-linked stocks also declined, with shares of Coinbase, Circle, and Galaxy Digital falling 1.5%, 3.5%, and nearly 6%, respectively. Underlying bitcoin's price action is a market struggling to gain momentum despite strong institutional demand.
Bitfinex analysts observed that short-term holders selling into strength are offsetting fresh demand from ETF buyers and other strategic investors. They predict 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 necessary to confirm a more sustainable bullish trend.