Bitcoin’s ascent toward $80,000 was short-lived as it retracted to $76,600 during Monday’s U.S. trading session amid escalating geopolitical concerns. The cryptocurrency peaked near $80,000 overnight, its highest mark since early February, but subsequently declined by approximately 1.5% in the past 24 hours. Major altcoins such as ether (ETH), XRP, and solana (SOL) each experienced around a 3% drop. Similarly, the CoinDesk 20 Index, which serves as an index for broader digital assets, decreased by about 2%.
Investors’ caution is fueled by uncertainty surrounding U.S.-Iran negotiations and disruptions in the Strait of Hormuz, a vital oil transit corridor. According to a Wall Street Journal report, Iran has offered to cease attacks on ships in the strait in exchange for an end to hostilities and lifting the U.S. naval blockade, alongside delaying nuclear discussions. Despite this proposal aimed at reviving stalled talks, skepticism persists following President Trump’s recent decision to cancel envoy dispatches to Pakistan intended for Iranian negotiations.
Oil prices continued their upward trajectory, with Brent crude oil climbing more than 3% to $107 per barrel, while West Texas Intermediate crude rose by 2.6% to $97. Concurrently, the Nasdaq dipped slightly by 0.3%, retracting from recent record highs, and the S&P 500 remained steady in anticipation of a significant earnings week featuring companies like Alphabet, Meta, Microsoft, and Apple.
Crypto-related stocks also saw declines, with Coinbase (COIN) dropping 1.5%, Circle (CRCL), the issuer of the USDC stablecoin, decreasing by 3.5%, and Galaxy Digital (GLXY), a digital asset investment firm, falling nearly 6%.
Analyzing bitcoin’s price movements suggests a market struggling to maintain momentum despite robust institutional interest. Bitfinex analysts observed that short-term BTC holders profiting from current prices have been selling during rallies, which counteracts new demand from ETF investors and strategies (MSTR).
“The near-term trend is likely towards consolidation or a retreat toward the $75,000 area,” they noted, adding that “a decisive breakthrough above $80,000 is necessary to establish a sustainable bullish phase.”