Bitcoin rose above $66,600 on Monday, building on a roughly 4% gain from the previous week. Market sentiment improved, supported by news of preliminary peace talks between the U.S. and Iran, which bolstered global risk assets and provided tailwinds to the crypto market.
Geopolitical tensions ease
Reports indicate that recent diplomatic progress signals have emerged between the U.S. and Iran. Iran’s Supreme National Security Council stated that Tehran has finalized a memorandum of understanding, which includes provisions for the immediate and permanent cessation of military operations on multiple fronts, including Lebanon.
Pakistan’s Prime Minister Shehbaz Sharif later stated that the final agreement is expected to be signed in Switzerland this Friday. Iran’s Deputy Foreign Minister Kazem Gharibabadi said that during the proposed 60-day ceasefire, both sides will continue advancing broader negotiations, with sanctions relief and Iran’s nuclear program expected to be key topics.
Spot ETFs continue to experience outflows
However, the price rebound has not been fully supported by institutional funds. According to SoSoValue data, U.S. spot Bitcoin ETFs recorded a combined net outflow of approximately $315.84 million last week, marking the fifth consecutive week of net outflows since mid-May.
- BTC increased by approximately 4% this week.
- Spot Bitcoin ETFs experienced net outflows of approximately $316 million.
- ETFs have experienced outflows for five consecutive weeks.
This means that, despite an improvement in macro sentiment, institutional investors as a whole remain cautious. If ETF outflows continue and retail capital fails to fully absorb them, market volatility could still intensify.
Watch above $70,700
From a short-term perspective, Bitcoin's momentum has recovered, and the price has reclaimed the key support area. However, the article notes that BTC remains below major moving averages and the previously broken uptrend line, indicating that the larger-scale trend has not yet fully reversed.
The article notes that if the rebound continues, the market will focus on the $70,700 area near the 50-day moving average, with a higher target near $73,400 at the 100-day moving average. The first key support level below is around $64,000; if this level is breached, downward pressure may increase again.