Bitcoin marked a minor decline on Friday, as crypto markets showed cautious optimism ahead of possible U.S.-Iran ceasefire negotiations, while investors remained wary before the release of key inflation figures.
The largest cryptocurrency declined 0.09 percent to $71,746 after surging over $72,000 earlier in the session. Bitcoin was on track for a weekly rise of 7.25 percent, supported by an improvement in broader risk sentiment.
Bitcoin rises on hopes of a more favorable U.S. regulatory environment
This week, Bitcoin drew support from hopes of a more favorable U.S. regulatory environment for digital assets, though approval of the CLARITY Act still seemed a long way off.
Attention remained firmly on planned ceasefire negotiations between the U.S. and Iran, which are expected to be held in Pakistan on Friday.
Tehran and Washington had reached a conditional ceasefire earlier this week, but Iran quickly accused the U.S. and Israel of breaching the deal and insisted that Lebanon be part of any final agreement. Iranian state media said Tehran had denied earlier reports that its delegation had arrived in Pakistan, adding that talks would stay on hold until it received adequate guarantees regarding Lebanon.
Iran was also continuing to restrict shipping through the Strait of Hormuz, a move that has drawn criticism from U.S. President Donald Trump.
The two sides remain far apart on ceasefire terms, with Tehran indicating it may impose a toll on vessels passing through Hormuz, an idea Washington has strongly opposed. Iran has also largely dismissed U.S. demands that it halt its nuclear program and surrender its uranium.
Uncertainty surrounding the conflict and its economic fallout has heavily pressured risk-sensitive assets like Bitcoin over the past month, although crypto markets have held up somewhat better than other asset classes.
Investors await key U.S. inflation data
The broader crypto market moved higher on Friday, following Bitcoin’s earlier gains, although upside remained capped as investors awaited key U.S. consumer price index data due later in the day.
Headline CPI is expected to have climbed sharply in March after the war with Iran drove up global oil and gas prices. Stronger inflation could reduce the Federal Reserve’s room to lower interest rates, which would be a negative backdrop for speculative assets.
Among major tokens, Ether edged up 0.14 percent to $2,184.18 and XRP gained 0.54 percent to $1.3390.
Solana gained 1.02 percent to $83.123, Cardano rose 0.03 perent and BNB traded 0.08 percent higher. In memecoins, Dogecoin rose 1.10 percent, while $TRUMP fell 0.87 percent to $2.887.
