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 returned to center stage.
After trading near $80,000 overnight, its highest level since early February, the largest cryptocurrency reversed its trend and fell about 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 U.S.-Iran talks and ongoing disruptions in the Strait of Hormuz, a key global oil transit route.
According to a Wall Street Journal ReportIran has offered to end attacks on shipping in the strait in exchange for a complete end to the war, including lifting the US naval blockade and postponing nuclear negotiations. The proposal aims to revive 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 during the day. Prices of Brent crude oil, often used as an international benchmark, climbed more than 3% to $107 a barrel, while West Texas Intermediate crude rose 2.6% to $97.
The Nasdaq edged down 0.3% in morning trading, moving away from recent records, while the S&P 500 was flat, ahead of a big earnings week that includes Mag7 companies such as Alphabet, Meta, Microsoft and Apple.
Meanwhile, cryptocurrency-related stocks declined across the board. Shares of crypto exchange Coinbase (COIN) fell 1.5%, while Circle (CRCL), issuer of the stablecoin USDC, fell 3.5% and Galaxy Digital (GLXY), a digital asset investment firm, slipped almost 6%.
Short-term holders sell
Beneath the surface, Bitcoin price action indicates that the market is struggling to gain momentum despite strong institutional demand.
Bitfinex Analysts note as short-term BTC holders making profits sold in force, offsetting new demand from ETF buyers and the Strategy (MSTR).
“The path of least resistance in the near term is likely a consolidation or pullback towards the $75,000 area,” the analysts said, adding that “a decisive breakout above $80,000” [is] necessary to confirm a more sustainable upward trend.
Learn more: Bitcoin climbs on low volume, leaving rally vulnerable to macroeconomic shocks
