bitcoin The rally towards $80,000 did not last long on Monday, with prices falling back to $76,600 during the US session as geopolitical tensions came back into focus.
After trading near $80,000 overnight, its highest level since early February, the largest cryptocurrency reversed course and was down around 1.5% in the last 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 become cautious about the prospects for US-Iran negotiations 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 stopping attacks on ships in the strait in exchange for a complete end to the war, including lifting the US naval blockade and delaying nuclear talks. The proposal aims to restart stalled negotiations, 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 throughout the day. Brent crude oil prices, often used as an international benchmark, rose more than 3% to $107 a barrel, while West Texas Intermediate crude oil rose 2.6% to $97.
The Nasdaq was down 0.3% in morning trading, retreating from recent all-time highs, while the S&P 500 was flat, ahead of a big earnings week that includes Mag7 companies like Alphabet, Meta, Microsoft and Apple.
Meanwhile, cryptocurrency-linked stocks fell across the board. Shares of cryptocurrency 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 company, fell almost 6%.
Short-term fork sale
Beneath the surface, bitcoin price action points to a market struggling to build momentum despite strong institutional demand.
Bitfinex analysts noted that short-term BTC holders taking profits have been selling off strongly, offsetting new demand from ETF and Strategy (MSTR) buyers.
“The path of least resistance in the near term is likely consolidation or a pullback towards the $75,000 region,” the analysts said, adding that “a decisive break above $80,000 [is] “It is necessary to confirm a more lasting bullish regime.”
Read more: Bitcoin is rising on reduced volume, leaving the rally vulnerable to a macro shock
