Bitcoin the rally towards $80,000 was short-lived on Monday, with prices falling back to $76,600 during the US session as geopolitical tensions crept back into focus.
After trading near $80,000 overnight, the highest level since early February, the largest cryptocurrency reversed course, falling about 1.5% over the past 24 hours. Major altcoins followed, with ether (ETH), XRP and solana (SOL) each falling around 3%. The CoinDesk 20 Index, a benchmark for the broader digital asset market, fell about 2% on Monday.
The pullback comes as investors grow wary of the outlook for U.S.-Iran talks and the ongoing disruption of the Strait of Hormuz, a key global oil transit route.
According to a Wall Street Journal report, Iran has proposed halting attacks on ships in the strait in exchange for a full end to the war, including lifting the US naval blockade and delaying nuclear talks. The proposal aims to restart deadlocked talks, but uncertainty remains high after President Trump on Saturday canceled sending envoys to Pakistan to negotiate with the Iranian side.
Oil prices continued to rise during the day. The price of Brent crude, often used as the international benchmark, rose more than 3% to $107 a barrel. barrel, while West Texas Intermediate crude rose 2.6% to $97.
The Nasdaq fell 0.3% in morning trade, retreating from recent record highs while the S&P 500 was flat, ahead of a big earnings week that includes Mag7 firms such as Alphabet, Meta, Microsoft and Apple.
Meanwhile, crypto-linked stocks fell across the board. Shares of crypto exchange Coinbase ( COIN ) fell 1.5%, while Circle ( CRCL ), issuer of the USDC stablecoin, fell 3.5%, and Galaxy Digital ( GLXY ), a digital asset investment firm, fell nearly 6%.
Short-term holders are selling
Beneath the surface, bitcoin’s price action points to a market struggling to build momentum despite strong institutional demand.
Bitfinex analysts noted that short-term BTC holders sitting on profits have sold for strength, offsetting fresh demand from ETF buyers and strategy (MSTR).
“The path of least resistance in the near term is likely to be consolidation or a pullback towards the $75,000 region,” the analysts said, adding that “a decisive break above $80,000 [is] required to confirm a more durable bullish regime.”
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