Bitcoin struggles as ETF outflows and geopolitical uncertainty weigh on sentiment

Bitcoin (BTC) traded around $83,600 at the time of writing on Monday, following a 3.1% decline last week. Institutional demand is showing signs of weakness, with US spot Bitcoin exchange-traded funds (ETFs) recording net outflows of $681.10 million last week, ending a three-week streak of inflows.

Meanwhile, persistent geopolitical uncertainty and conflicting signals are dampening risk appetite, keeping investors cautious and limiting the recovery of the world's largest cryptocurrency.

Geopolitical uncertainty and mixed signals dampen risk appetite

US President Donald Trump claimed on Sunday that Russia and Ukraine had agreed to an "energy ceasefire," but provided no details about the agreement, according to The Guardian.

"Effective immediately, there is an Energy Ceasefire in the War between Russia and Ukraine. Both sides have agreed to it. DO NOT VIOLATE IT!" Trump wrote on his social media platform, Truth Social.

Ukrainian President Volodymyr Zelenskyy said he was unaware of the energy ceasefire between Ukraine and Russia announced by Trump, but added that Kyiv would accept such an agreement if Moscow agreed to it.

However, speaking virtually at a conference on Monday, Zelenskyy said it was clear that Russian President Vladimir Putin "does not read Truth Social," the platform where Trump announced the ceasefire. As previously reported, Russian strikes continued despite the announcement.