Bitcoin rose slightly on Monday, stabilizing after last week's sharp decline.
Crypto market sentiment remains fragile amid ongoing institutional selling and rising tensions in the Middle East.
Bitcoin rose 1.5% to $63,053.70 as of 9:23 AM Moscow time. The world's largest cryptocurrency lost nearly 18% over the past week, posting its worst weekly performance this year.
Bitcoin saw its largest weekly outflow from spot ETFs in 14 months
Over the past four weeks, Bitcoin has experienced sustained and increasing pressure from institutional selling, primarily reflected in capital outflows from spot exchange-traded funds (ETFs).
US spot Bitcoin ETFs recorded outflows of $1.72 billion last week, the largest weekly outflow since April 2025. Spot ETFs posted their fourth consecutive week of outflows, totaling $5.4 billion, according to data aggregator SoSoValue.
Institutional selling occurred amid declining interest in cryptocurrencies, driven by risk aversion due to the war with Iran and its impact on interest rates.
Investors also shifted to artificial intelligence-related assets, particularly stocks, favoring the sector over cryptocurrencies amid growing optimism. However, Bitcoin received some support when the rally in the AI sector stalled abruptly on Friday and Monday.
Crypto Market Today: Altcoins Recover, but Escalating Iran-Israel Conflict Pressures the Market
Most cryptocurrencies rose on Monday, following Bitcoin's modest recovery. However, continued risk aversion is hindering more significant growth, particularly amid renewed hostilities in the Middle East.
Iran and Israel exchanged airstrikes on Sunday evening amid growing irritation in Tehran over Israel's ongoing aggression against Lebanon and Hezbollah.
Israel launched airstrikes against Iran despite calls for restraint from US President Donald Trump, who stated that a peace deal with Tehran remains possible.
However, the escalation of hostilities in the Middle East, including last week's exchange of airstrikes between the US and Iran, has significantly undermined hopes for peace. Against this backdrop, oil prices rose sharply, spooking broader markets.
Fears also grew that the Federal Reserve could raise or maintain high interest rates following the release of stronger-than-expected US nonfarm payrolls data on Friday. The resilience of the labor market gives the Fed more grounds for raising rates—a scenario unfavorable for non-yielding speculative assets like cryptocurrencies.
Among altcoins, Ether, the second-largest by market cap, rose 3.4% to $1,666.44, rebounding from a nearly 20% decline.
XRP and Solana each rose 1.3%, while Cardano and BNB gained 0.4% and 1.3%, respectively.
Among meme coins, Dogecoin rose 0.8%, and $TRUMP gained 2%.