Bitcoin stalled near $64,000 on Monday, bringing its brief weekend recovery to an end. Traders remained cautious as they assessed mixed signals from the latest US-Iran peace talks.
Continued capital outflows from the cryptocurrency market also weighed on prices. Meanwhile, investors increasingly shifted toward artificial intelligence stocks, which currently offer clearer growth narratives and stronger fundamentals.
Bitcoin Fails to Hold Weekend Gains
Bitcoin fell 0.4% to $64,045.60 by 06:41 GMT. The world’s largest cryptocurrency had approached $65,000 during the weekend but lost momentum before Monday’s trading session.
The lack of a decisive move reflected uncertainty across both geopolitical and cryptocurrency markets.
Although diplomatic developments offered some support to risk appetite, continued tensions in the Middle East prevented a stronger Bitcoin recovery.
Iran Reports Progress in US Peace Talks
Iranian officials reported some progress following talks with the United States in Switzerland over the weekend.
Qatar and Pakistan, which are mediating the negotiations, expressed optimism about the discussions. According to the mediators, the US and Iran agreed to hold technical meetings this week based on a proposed 14-point framework.
These positive signals helped improve market sentiment and limited further losses across the cryptocurrency sector.
However, uncertainty remained high because the diplomatic progress was accompanied by renewed military threats.
Trump Threatens Further Strikes on Iran
US President Donald Trump warned that Washington could resume attacks against Iran unless Tehran takes action to restrain Hezbollah in Lebanon.
Ongoing fighting between Israel and Hezbollah in southern Lebanon remains a major obstacle in the peace negotiations.
Iran has repeatedly demanded that Lebanon and Hezbollah be included in any broader agreement. Tehran also temporarily closed the Strait of Hormuz over the weekend in response to recent Israeli military action.
The conflicting diplomatic and military signals left traders uncertain about the likelihood of a lasting peace agreement.
Investors Shift From Crypto to AI Stocks
Cryptocurrency prices continued to underperform other risk-sensitive markets as investors moved more capital into high-performing AI stocks.
Technology and artificial intelligence companies currently appear to offer investors more visible earnings potential and clearer business fundamentals than many digital assets.
This shift has reduced demand for Bitcoin and other cryptocurrencies, despite a modest improvement in broader market sentiment.
Bitcoin ETFs Record Sixth Week of Outflows
Spot Bitcoin exchange-traded funds recorded their sixth consecutive week of net outflows last week.
The continued withdrawals suggest that institutional appetite for Bitcoin remains weak. ETF outflows can place additional pressure on the cryptocurrency because they indicate lower demand from large investors.
Without renewed institutional inflows, Bitcoin may struggle to build enough momentum for a sustained move above $65,000.
Altcoins Trade Without Clear Direction
Most major altcoins also struggled on Monday because of the limited number of positive cryptocurrency-specific developments.
Ethereum, the world’s second-largest cryptocurrency, declined 0.1% to $1,734.33.
XRP dropped 1.5%, while BNB remained broadly unchanged. Solana gained 0.7%, but Cardano fell by the same percentage.
Among major memecoins, Dogecoin declined 0.3%. In contrast, the TRUMP token jumped 6.1%, outperforming the broader cryptocurrency market.
