Bitcoin posted a modest rebound on Friday, supported by dip-buying after recent declines. However, overall sentiment in the cryptocurrency market remained fragile due to uncertainty around U.S. interest rates and rising geopolitical tensions.
Despite the short-term recovery, Bitcoin was still on track for a weekly loss. The world’s largest cryptocurrency has fallen about 25% so far in 2026, highlighting persistent downside pressure. By early trading, Bitcoin was priced at $67,843, down roughly 2.8% for the week and heading toward losses in five of the past seven weeks.
Interest Rate Uncertainty Weighs on Crypto
Cryptocurrency prices extended their recent slide as investors grew increasingly cautious ahead of key U.S. economic data. Uncertainty over the Federal Reserve’s interest rate outlook has dampened appetite for speculative assets such as Bitcoin.
Minutes from the Fed’s January meeting revealed that several policymakers remain open to additional rate hikes to contain inflation risks. Higher interest rates typically reduce liquidity in financial markets, which tends to hurt cryptocurrencies that perform better in low-rate, high-liquidity environments.
Investors are now closely watching the upcoming Personal Consumption Expenditures (PCE) price index data, the Fed’s preferred inflation measure. Fourth-quarter U.S. GDP figures are also due, and both releases are expected to influence expectations for future monetary policy.
Geopolitical Risks Add to Market Caution
Risk appetite was further weakened by escalating tensions between the United States and Iran. President Donald Trump reiterated warnings of potential military action if Iran does not agree to a nuclear deal. Reports indicate that Washington is evaluating multiple military options and has increased its regional military presence.
These developments pushed investors toward traditional safe-haven assets such as the U.S. dollar and gold, while cryptocurrencies, including Bitcoin, faced renewed selling pressure.
Altcoins Also Face Weekly Losses
The broader crypto market traded within a narrow range on Friday, with most major altcoins also set for weekly declines.
Ethereum slipped 1.5% to $1,954 and was down more than 6% for the week. XRP and BNB recorded weekly losses of around 6% and 3%, respectively. Cardano and Solana were also lower, each heading for declines between 5% and 7%. Among meme tokens, Dogecoin stood out with an 11% weekly drop.
Overall, cryptocurrencies remain sensitive to macroeconomic developments and geopolitical risks, with traders closely monitoring upcoming U.S. inflation and growth data for direction.
