The price of Bitcoin rose above $78,000 last week as risk sentiment improved due to hopes for de-escalation between the United States and Iran and renewed ceasefire expectations, while weekly inflows to U.S. spot Bitcoin exchange-traded funds approached $1 billion, indicating that institutional demand is still in the process of rebuilding.

That backdrop flipped on April 20 after Iranian media denied reaching an agreement on a second round of negotiations, leading Bitcoin's price to return to the $74,000 area as traders reassessed Middle East risks and macro-sensitive assets declined.