Bitcoin falls below $62,500 after Iran denies U.S. diplomatic talks

Bitcoin fell to $62,229 early in the week after a $146.66 million liquidation event, despite U.S. President Donald Trump's announcement that he had cancelled a planned military strike on Iran to pursue diplomatic channels. The initial market reaction proved short-lived after Iran denied that any talks with the U.S. were underway.

Trump stated that Iran had backed away after seeing the scale of a planned attack, adding that "negotiations begin on Monday afternoon." This sparked a positive reaction, with crude oil falling more than 5.33% to around $80 per barrel and Bitcoin rallying toward $63,700. However, Iran's Foreign Ministry spokesperson dismissed the claims, stating "We are not currently holding any talks with the American side" and clarifying that discussions with Oman concerned only a temporary shipping route through the Strait of Hormuz.

Bitcoin is currently trading near $62,560, down 1.35% over the past 24 hours, with the broader crypto market weakening as total capitalization fell 1.14% to $2.15 trillion. Top analysts suggest Bitcoin is trapped between the $62,000 support level and the $64,000 liquidity zone, with the next directional move likely to determine broader market direction.

Trading activity has intensified despite falling prices. Spot trading volume climbed 15.87%, while perpetual futures open interest jumped 27.46% to $377.89 billion, indicating that more leveraged positions are entering the market and setting the stage for larger price swings. Bitcoin is also moving closely with traditional safe-haven assets, showing a 61% correlation with gold over the past week—suggesting investors are responding to the same global economic and geopolitical concerns.