Bitcoin pulls back to $76,600 as rising oil price and Iran risks stall the rally
Short-term holder profit-taking is offsetting fresh demand from ETFs and Strategy, pointing to consolidation below $80,000, Bitfinex analysts said.
What to know:
- Bitcoin slipped Monday below $77,000, reversing an overnight push toward $80,000 amid renewed tensions with Iran.
- Brent crude oil surged to $107, weighing on risk appetite as U.S-Iran talks ground to a halt.
- Bitcoins short-term holders have used the rally to take profits, offsetting the fresh demand from ETFs and Strategy, Bitfinex analysts said, adding that a pullback toward $75,000 is likely.
The pullback comes as investors grow cautious about the outlook for U.S.-Iran negotiations and the ongoing disruption to 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 U.S. 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 for negotiating with the Iranian side.
Oil prices continued to rise during the day. Brent crude oil prices, often used as the international benchmark, climbed more than 3% to $107 a barrel, while the West Texas Intermediate crude oil was up 2.6% to $97.
