Bitcoin rose on Thursday, extending its weekly gains as prices recovered following a brief pullback, with investors weighing renewed geopolitical tensions, uncertainty over U.S. trade tariffs and shifting risk appetite across global markets.
The world’s largest cryptocurrency remained supported despite broader market volatility, as earlier declines in risk assets and a selloff in high-growth technology shares briefly pressured sentiment.
U.S.-Iran conflict and trade tensions in the spotlight
Bitcoin was on track for a weekly advance of 2.03 percent after rebounding above the $65,000 level to trade at $65,068, while broader cryptocurrency markets continued to witness declines. Investors continued to monitor developments around U.S.-Iran tensions and trade policy uncertainty for clues on the outlook for risk assets.
Bitcoin’s brief pullback on Friday came as investors turned more cautious amid a series of risk-off developments. The U.S.-Iran conflict appeared to widen after Iran-backed Houthi militants in Yemen targeted two Saudi vessels in the Red Sea, raising fresh concerns over potential disruptions to global oil supplies.
Crude prices climbed 15 percent this week, fueling worries that higher energy costs could reignite inflation pressures and prompt a more hawkish stance from major central banks.
Market sentiment was further weighed down after the Donald Trump administration unveiled new tariffs on 60 trading partners, escalating fears of a renewed global trade conflict. The measures are scheduled to come into effect on Friday.
Read: Bitcoin falls to $65,500 as investors eye Clarity Act progress, Mideast developments
Spot ETFs post strongest weekly inflows since early May
Although oil market disruptions and trade tariffs do not directly influence Bitcoin in the short term, their broader economic consequences could weigh on investor appetite for riskier assets, including cryptocurrencies.
Still, Bitcoin found support from improving capital flows during the week, with spot exchange-traded funds recording their strongest weekly inflows since early May, according to data from SoSoValue.
As Bitcoin recovered, broader cryptocurrency prices declined on Friday, with most major tokens set for subdued weekly performances.
The world’s second-largest cryptocurrency, Ether, fell 2.12 percent to $1,887.24, while XRP dropped 2.34 percent to $1.1083. Solana and Cardano declined 2.73 percent and 4.22 percent, respectively, while BNB slipped 0.28 percent.
Among memecoins, Dogecoin fell 3.27 percent and $TRUMP dropped 2.64 percent as risk appetite across the digital asset market remained subdued.
