Bitcoin hovered near a four-month low on Friday and was on track for a sharp weekly loss, as continued institutional selling and lingering concerns surrounding the Iran conflict prompted investors to reduce exposure to cryptocurrencies.
Bitcoin dropped 1.19 percent to $63,055 as of 9:16 GMT. The world’s largest cryptocurrency was set for a 14.15 percent weekly decline.
Bitcoin ETFs record net outflows of $1.4 billion
Bitcoin remained under pressure after major corporate holder Strategy revealed earlier this week that it had trimmed part of its holdings. Sentiment was also weighed down by growing investor preference for artificial intelligence-related stocks, drawing capital away from digital assets.
Bitcoin was on track for a steep weekly decline, weighed down by sustained institutional selling, particularly through spot exchange-traded funds (ETFs). According to SoSoValue data, Bitcoin ETFs recorded net outflows of $1.4 billion this week, marking a fourth straight week of withdrawals exceeding $1 billion.
The selling pressure coincided with a broader flight from risk assets, driven largely by uncertainty surrounding the U.S.-Iran conflict. Hostilities between the two countries resumed over the past week, while reports indicated that Iran had suspended indirect talks with the United States.
Investor appetite for AI-related stocks surges
Investor appetite for artificial intelligence-related stocks also contributed to the weakness in crypto markets, as capital flowed away from non-yielding digital assets. Expectations of major upcoming IPOs, including those of SpaceX, OpenAI and Anthropic, further boosted enthusiasm for the AI sector.
In addition to institutional outflows, retail demand for Bitcoin appeared subdued. Data from Coinglass showed the Bitcoin Coinbase Premium Index, which compares Bitcoin prices on Coinbase with the broader global market, remained deeply negative, indicating weaker buying interest from U.S. retail investors.
Read: Bitcoin drops over 7 percent to $62,453 amid 13 days of spot U.S. ETF outflows
Ether falls nearly 17 percent for the week
The broader cryptocurrency market extended its losses on Friday, following Bitcoin lower as investors found little reason to return to digital assets. Weakness across risk-sensitive markets further dampened sentiment, while attention shifted to upcoming U.S. nonfarm payrolls data for fresh clues on the health of the economy and the outlook for interest rates.
Ether, the world’s second-largest cryptocurrency, dropped 4.86 percent to $1,678.79, and was down nearly 17 percent for the week, touching its lowest level in 14 months.
XRP declined 2.29 percent to $1.1337, Solana fell 3.81 percent, and Cardano plunged more than 14 percent on Friday, hitting its lowest level in more than five years.
