Bitcoin slipped slightly on Friday, with the broader cryptocurrency market showing little movement despite improved risk sentiment following U.S. President Donald Trump’s decision to delay a decision on attacking Iran.
The largest cryptocurrency was on track for a second consecutive week of modest declines, trading within a narrow range since hitting record highs earlier in June. Bitcoin dropped 0.3% to $104,580.40 as of 01:58 ET (05:58 GMT).
Muted trading volumes reflected the U.S. market holiday on Thursday, while hawkish remarks from the Federal Reserve earlier this week continued to weigh on crypto sentiment.
Bitcoin Weekly Performance and Market Reaction to Iran Comments
Bitcoin has fallen about 0.8% this week, trading between $103,000 and $108,000 for most of June. The market showed little enthusiasm after Trump said he would decide within “two weeks” on whether to involve the U.S. in the Israel-Iran conflict.
While other risk assets, including Asian stocks and currencies, gained following the announcement, gold prices declined. The delay eased fears of an imminent U.S. strike on Iran, which could have escalated the conflict significantly. However, Trump’s “two weeks” timeframe remains ambiguous, as the president has used this phrase before to postpone key policy decisions.
Altcoins Rangebound Amid Hawkish Fed Sentiment
Most altcoins remained within tight ranges Friday, continuing subdued trading after the Fed’s recent hawkish stance unsettled speculative markets.
- Ethereum was flat at $2,520.12
- XRP dipped 0.2% to $2.15
- Solana edged up 0.2%
- Cardano slipped 0.9%
- Dogecoin fell 1.1%
- Meme token $TRUMP dropped 1.6%
The Federal Reserve held interest rates steady this week but indicated no near-term easing, citing persistent inflation risks. While projecting two rate cuts in 2025, it trimmed forecasts for cuts in 2026.
Sustained higher interest rates tend to pressure speculative assets like cryptocurrencies by limiting available investment capital. The Fed’s aggressive rate hikes in 2022 and 2023 had previously driven a prolonged crypto slump, with a partial recovery seen in late 2023 and 2024.
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