Bitcoin's brief foray toward the $80,000 mark was short-lived, as the cryptocurrency's price fell back to $76,600 during Monday's US trading session, influenced by escalating geopolitical concerns. The CoinDesk 20 Index, a barometer for the broader digital assets market, decreased by approximately 2% on Monday, with major altcoins such as ether, XRP, and solana experiencing declines of around 3%.
The recent pullback is attributed to investors' growing caution regarding the prospects of US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a crucial global oil transit route. Oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 per barrel and West Texas Intermediate crude oil increasing by 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. Meanwhile, shares of crypto-linked companies declined, with Coinbase, Circle, and Galaxy Digital experiencing losses of 1.5%, 3.5%, and nearly 6%, respectively.
According to Bitfinex analysts, short-term bitcoin holders are selling into strength, offsetting fresh demand from ETF buyers, which may lead to consolidation or a pullback toward the $75,000 region.