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 geopolitical concerns regained prominence. Following an overnight trade near $80,000, its highest since early February, bitcoin reversed its course, declining by 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. This pullback occurs as investors become increasingly cautious about the prospects of US-Iran negotiations and the ongoing disruption in the Strait of Hormuz, a critical global oil transit route. According to a report by the Wall Street Journal, Iran has proposed a cessation of 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.
The proposal aims to restart stalled negotiations, but uncertainty remains high after President Trump canceled the dispatch of envoys to Pakistan for negotiations with the Iranian side on Saturday. Oil prices continued their ascent, with Brent crude oil prices rising over 3% to $107 a barrel and West Texas Intermediate crude oil increasing by 2.6% to $97. The Nasdaq declined by 0.3% in morning trading, retreating from recent record highs, while the S&P 500 remained flat, ahead of a significant earnings week that includes major firms such as Alphabet, Meta, Microsoft, and Apple. Meanwhile, stocks linked to cryptocurrencies declined across the board, with shares of crypto exchange Coinbase falling 1.5%, Circle, the issuer of the USDC stablecoin, dropping 3.5%, and Galaxy Digital, a digital asset investment firm, 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 required to confirm a more durable bullish regime.