Bitcoin edged higher on Friday, supported by dip-buying following recent losses, though overall sentiment toward cryptocurrencies remained fragile amid uncertainty over interest rates and rising geopolitical tensions.
Still, the world’s largest digital asset was on track for a weekly decline, as a short-lived rebound from last week lost momentum.
By 11:11 GMT, Bitcoin had climbed 1.37 percent to $67,890. Despite the uptick, it was down about 2.8 percent for the week and was poised to post losses in five of the past seven weeks. Bitcoin was also carrying losses of roughly 25 percent so far in 2026.
Uncertainty grows over the path of U.S. interest rates
Bitcoin and the broader cryptocurrency market extended losses this week, as demand for speculative assets weakened amid mounting uncertainty over the path of U.S. interest rates.
Pressure intensified on Wednesday after minutes from the Federal Reserve’s January meeting revealed that several policymakers favored keeping the door open to further rate hikes to contain inflation, a prospect that typically weighs on risk-sensitive assets. A series of mixed inflation and labor market data releases also clouded the rate outlook. Cryptocurrencies are particularly sensitive to higher borrowing costs, as they generally perform better in periods of strong liquidity.
Investors are now awaiting December’s PCE price index data, due later in the day. The reading, the Fed’s preferred measure of inflation, is expected to play a key role in shaping longer-term rate expectations. Fourth-quarter U.S. GDP data is also scheduled for release later in the day.
Read: Bitcoin and Ether dip on hawkish Fed signals, heightened geopolitical tensions
Geopolitical tensions impact risk appetite
Risk appetite was further dampened by escalating geopolitical tensions between the United States and Iran. President Donald Trump reiterated warnings of potential military action if Tehran failed to agree to a nuclear deal with Washington.
Several reports this week indicated that the U.S. was weighing multiple military options, with American forces already positioned in the region.
The heightened uncertainty weighed on cryptocurrencies, particularly Bitcoin, as investors shifted toward traditional safe-haven assets such as the dollar and gold.
Broader cryptocurrency prices traded in a narrow range on Friday, with most major altcoins heading for another week of declines. Ether, the world’s second-largest cryptocurrency, rose 0.24 percent to $1,954.59 but was on track for a weekly loss of about 6.2 percent.
XRP rose 0.39 percent to $1.4146, while BNB gained 0.88 percent to $609.60. The two assets were down roughly 6 percent and 3 percent for the week, respectively.
Meanwhile, Cardano and Solana were poised to post losses of between 5 percent and 7 percent. Among memecoins, Dogecoin was facing a sharp weekly drop of around 11 percent.
