The brief surge of bitcoin towards $80,000 lost momentum on Monday, with the cryptocurrency's price slipping to $76,600 during the US trading session as concerns over geopolitical tensions and rising oil prices resurfaced. Following an overnight high near $80,000, its highest point since early February, bitcoin reversed direction, posting a 1.5% decline over 24 hours. Major alternative cryptocurrencies, including ether, XRP, and solana, also fell, each dropping around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital asset market, decreased by approximately 2% on Monday. The pullback is attributed to growing investor caution regarding the outlook for US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a critical global oil transit route.
According to reports, Iran has proposed a ceasefire 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, aiming to restart stalled negotiations. However, uncertainty remains elevated after President Trump canceled plans to send envoys to Pakistan for negotiations with Iran. Oil prices continued their ascent, with Brent crude rising over 3% to $107 a barrel and West Texas Intermediate crude up 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 major firms like Alphabet, Meta, Microsoft, and Apple. Meanwhile, stocks linked to the crypto sector declined, with Coinbase shares 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, currently in profit, have been selling into the strength, offsetting new demand from ETF buyers and strategic investors. The analysts 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 durable bullish trend.