The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price slipping to $76,600 during US trading hours as geopolitical concerns resurfaced. Following an overnight high near $80,000, its highest level since early February, bitcoin reversed direction, declining approximately 1.5% over 24 hours.
Major alternative cryptocurrencies, including ether, XRP, and solana, each dropped around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, fell about 2% on Monday. The retreat comes amid growing investor caution regarding US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. According to a report by the Wall Street Journal, Iran has proposed a ceasefire 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. This proposal aims to revive stalled negotiations, but uncertainty persists after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran.
Oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 a barrel and West Texas Intermediate crude oil increasing 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 featuring prominent firms such as Alphabet, Meta, Microsoft, and Apple.
Meanwhile, stocks linked to cryptocurrencies 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 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 investment strategies.
The analysts noted that the most likely near-term path 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.