There was a notable sharp decline in the cryptocurrency markets on the first day of the week. Although Bitcoin approached 80 thousand dollars with a short-term rise, its price quickly retreated during the day and found buyers at the level of 76,600 dollars. This move took place along with geopolitical developments in the market and the increase in global risk perception.
Market-wide decline
After this decline led by Bitcoin, major altcoins also experienced significant declines. Ethereum (ETH), XRP and Solana (SOL) lost approximately 3 percent of their value during the day. CoinDesk 20 Index, which represents a wide segment of the digital asset market, also closed Monday at approximately 2 percent minus.
It was evaluated that the uncertainties regarding the negotiations between the USA and Iran and the tension in the Strait of Hormuz were behind this fluctuation in the markets. In particular, it was observed that investors were reviewing their positions, as any disruption in oil shipments in the region could directly affect global markets.
Geopolitical developments and classical markets
According to the Wall Street Journal, the Iranian side presented a new offer to the United States to end the war completely, with conditions such as lifting the naval blockade and postponing nuclear negotiations, in exchange for ending the attacks in the Strait of Hormuz. However, former US President Donald Trump’s recent cancellation of the negotiation delegation to be sent to Pakistan increased uncertainty.
The increase in global risk perception was also reflected in the commodity market. While the barrel price of Brent oil increased by more than 3 percent to 107 dollars, US crude oil (WTI) increased by 2.6 percent to 97 dollars.
A cautious outlook was also evident in the US stock markets. The Nasdaq index fell by 0.3 percent, moving away from its record level. S&P 500 remained flat before the financial statements to be announced by major technology companies.
Sharp losses in value in crypto companies
Apart from cryptocurrencies, the decline in stocks related to the sector also attracted attention. Shares of Coinbase, the leading US cryptocurrency exchange, lost 1.5 percent. There was a 3.5 percent decline in the shares of Circle company, known for its USDC stablecoin, and an almost 6 percent decline in the digital asset investment company Galaxy Digital.
Market analysts pointed out that institutional demand remained strong under the Bitcoin price movement, but short-term investors were taking profits. It was stated that investors, especially those who hold Bitcoin in the stock markets and are in a profit position, turned to selling, suppressing the price despite ETF purchases and great investor interest.
Bitfinex analysts emphasized that the most likely scenario for Bitcoin in the near term will be a horizontal course for a while or a retreat towards the level of 75 thousand dollars, and that the price must rise steadily above 80 thousand dollars for a permanent upward trend to begin.
