Bitcoin edged higher on Monday, extending its weekend recovery as traders weighed mixed signals around U.S.–Iran peace talks.
The rally was capped, however, by continued capital outflows from cryptocurrency markets as investors moved to AI and semiconductor stocks, which continue to witness a major rally.
Bitcoin rose 1.27 percent to $64,038 by 8:39 GMT, after briefly approaching the $65,000 level over the weekend before momentum cooled in early Monday trading.
Bitcoin rebounds on peace deal hopes
Bitcoin recovered after Iranian officials said on Monday that there had been some progress in quadrilateral talks with the United States held in Switzerland over the weekend.
Mediators Qatar and Pakistan adopted a cautiously optimistic tone, noting that both Washington and Tehran had agreed to continue technical discussions this week on a proposed 14-point framework deal.
However, the positive signals came against a backdrop of renewed tensions, after U.S. President Donald Trump warned that Washington could resume strikes on Iran if it fails to curb Hezbollah’s activities in Lebanon.
Ongoing clashes between Israel and Hezbollah in southern Lebanon remain a major sticking point in the negotiations. Tehran has consistently insisted that Lebanon and Hezbollah be included in any potential settlement, and had also moved to close the Strait of Hormuz over the weekend in response to recent Israeli actions.
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Bitcoin ETFs post sixth consecutive week of net outflows
Despite the ongoing tensions, more optimistic sentiment around the weekend talks helped improve risk appetite, limiting downside pressure on crypto markets.
However, the sector continued to underperform broader risk assets as investors rotated further into tech stocks, favoring assets with stronger perceived fundamentals.
At the same time, spot Bitcoin exchange-traded funds (ETFs) recorded a sixth consecutive week of net outflows, underscoring weakening institutional demand for crypto.
Broader cryptocurrency prices tracked Bitcoin higher on Monday, with Ethereum, the world’s second-largest cryptocurrency, rising 1.14 percent to $1,748.35.
XRP declined 0.89 percent, while BNB gained 0.88 percent.
Solana rose 1.13 percent, while Cardano edged up 0.12 percent.
Among memecoins, Dogecoin rose 0.58 percent, while $TRUMP surged 5.17 percent, outperforming the wider sector.
