Bitcoin declined on Thursday but remained 6.1 percent higher for the week. The move came as signs emerged that the two-week U.S.-Iran ceasefire, which had fueled Tuesday’s broad market rally, was beginning to unravel less than 48 hours after its announcement.
As of 8:01 GMT, Bitcoin was trading 0.14 percent lower at $71,013.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf said three provisions of the ceasefire proposal had been violated, though he did not specify which ones. Meanwhile, Israeli strikes in Lebanon continued.
Crypto market declines
Bitcoin continued to decline as the Strait of Hormuz, the vital shipping corridor that was meant to be the central element of the agreement, also remained effectively shut, with very limited tanker movement despite Iran’s promise to permit coordinated passage.
Brent crude recovered 2 percent to around $97 after tumbling more than 10 percent on Wednesday, marking its sharpest one-day drop in six years.
The bounce underscores how rapidly sentiment has shifted, with markets moving from pricing in de-escalation to factoring in doubts over whether the ceasefire can last through the weekend, let alone the full two-week period.
Ether declined 0.41 percent to $2,181.26 after spearheading the ceasefire-driven rally with a 5.2 percent weekly advance. Solana’s SOL fell 3.01 percent to $82.293, XRP dropped 3.56 percent to $1.3321, and dogecoin lost 3.73 percent.
Read: Bitcoin rises above $69,000 as risk appetite remains muted
U.S. policymakers move to create a clearer regulatory structure for stablecoins
Elsewhere, the U.S. Federal Deposit Insurance Corporation this week formally set out its proposed approach to stablecoin issuers, under which major issuers would be regulated in line with the framework laid out in the GENIUS Act.
The proposal also made clear that stablecoins would not carry the same FDIC deposit insurance protections that apply to traditional bank accounts.
The move marks the latest move by U.S. policymakers to create a clearer regulatory structure for stablecoins and the yields offered on them.
Meanwhile, the Clarity Act, which is intended to define that framework more broadly, remains under debate in Congress after months of delays. One of the main sticking points is how stablecoin yields should be treated, with large banks insisting that issuers should be subject to oversight as stringent as that imposed on traditional deposit-taking institutions.
Supporters of the crypto industry, however, have broadly pushed back against that view.
