Bitcoin edged higher on Friday following declines triggered by escalating military tensions between the U.S. and Iran in the Strait of Hormuz, which weighed on investor appetite for risk-sensitive assets, dragging broader cryptocurrency markets lower.
Despite the pullback, the world’s largest cryptocurrency remained on track for a sixth consecutive weekly gain, supported by continued institutional inflows, bargain buying and progress by U.S. lawmakers on a major crypto regulatory bill.
Bitcoin rose 0.20 percent to $80,181 as of 12:48 GMT, and was set for a 5.13 percent weekly increase.
Risk-sensitive markets weaken on escalating Mideast tensions
This week, Bitcoin came under pressure after major corporate holder Strategy Inc. said it may sell part of its holdings to fund dividend payments, although the scale and timing of any potential sale remain uncertain.
Risk-sensitive markets also weakened on Friday after the U.S. military said it had launched retaliatory strikes against Iran following attacks on three American warships passing through the Strait of Hormuz.
The escalation followed Iranian accusations earlier this week that the U.S. had breached a ceasefire by targeting Iranian vessels and civilian areas.
The latest tensions were triggered by a U.S. operation aimed at restoring commercial shipping through Hormuz, although President Donald Trump later said the mission had been paused only days after it began.
Iran strongly criticized the operation and was reportedly moving to formalize its control over the Strait of Hormuz. Thursday’s military flare-up overshadowed earlier remarks from both Washington and Tehran suggesting negotiations were progressing positively, with reports earlier in the week indicating that a deal was nearing completion.
BNB falls 1.72 percent
Reports revealed on Thursday that Binance, the world’s largest cryptocurrency exchange, received a letter from the U.S. Treasury calling on the company to adhere to a monitoring program following reports that roughly $1 billion in crypto transactions involving Iran-linked entities flowed through the platform.
The Treasury reportedly urged Binance to comply with the monitoring measures it agreed to in 2023 after pleading guilty to charges tied to sanctions breaches and anti-money-laundering violations. The letter was connected to allegations that more than $1 billion moved through the exchange to groups linked to Iran during 2024 and 2025.
BNB, Binance’s native token, fell 1.72 percent on Friday.
Read: Bitcoin holds above $81,000 on hopes for U.S.-Iran deal as Ether slips to $2,346.3
Cryptocurrency prices decline
As Bitcoin recovered, broader cryptocurrency prices declined on Friday as tensions surrounding Iran weighed on risk sentiment. Most major altcoins were also headed for a muted week.
The world’s second-largest cryptocurrency, Ether, fell 2 percent to $2,286.32, while XRP dropped 1.77 percent to $1.3893.
Solana and Cardano declined 1.37 percent and 1.79 percent, respectively.
Among meme tokens, Dogecoin slid 4.17 percent, while $TRUMP edged down 1.74 percent.
