Bitcoin Nears $63K as US-Iran Peace Hopes Support Market Sentiment
Bitcoin moved higher on Friday and was on track to post modest weekly gains as investors reacted positively to growing optimism surrounding a potential peace agreement between the United States and Iran.
Despite the rebound, gains in the cryptocurrency market remained relatively limited. Bitcoin continued to trade near its yearly lows amid ongoing institutional selling through spot Bitcoin exchange-traded funds (ETFs).
Additional pressure on crypto markets came from strong investor interest in artificial intelligence stocks and the highly anticipated SpaceX initial public offering, which attracted substantial capital from both retail and institutional investors.
Bitcoin rose 0.9% to $63,337 during early trading, extending its weekly gain to approximately 4% after suffering a sharp 17% decline the previous week.
Trump Signals Progress on Iran Peace Deal
Risk assets across global markets received a boost after U.S. President Donald Trump announced that the United States had reached a peace agreement with Iran that could potentially be finalized as soon as this weekend.
According to Trump, the proposed deal would bring an end to the conflict and allow the immediate reopening of the strategically important Strait of Hormuz.
However, Iranian officials offered a more cautious assessment. Reports from local media, citing comments from the foreign ministry, indicated that while negotiations had made progress, several key issues remained unresolved.
Tehran has also not yet made a final decision regarding the agreement.
Markets Rally as Oil Prices Retreat
Despite the uncertainty, financial markets responded positively to Trump’s comments.
Stock markets in both the United States and Asia moved higher, while oil prices declined sharply. The drop in oil eased concerns about inflationary pressures driven by energy costs and reduced fears that central banks may need to keep interest rates elevated for longer.
However, investors remain cautious. Trump has previously suggested that an agreement with Iran was close, only for negotiations to stall later. Additionally, military tensions in the Middle East persisted, with reports indicating that Iran launched drone strikes on vessels near the Strait of Hormuz on Friday.
Bitcoin ETFs Record Fourth Consecutive Week of Outflows
Institutional demand for Bitcoin remained weak as spot Bitcoin ETFs continued to experience capital outflows.
According to data from SoSoValue, spot Bitcoin ETFs were heading toward a fourth consecutive week of net withdrawals. While the pace of selling slowed, investors still pulled approximately $401.7 million from funds through Thursday.
That figure represents an improvement compared to the previous week’s outflows of $1.72 billion, suggesting that selling pressure may be easing.
Many institutional investors have shifted capital away from cryptocurrency and toward sectors perceived as offering stronger fundamentals, particularly artificial intelligence-related companies.
SpaceX IPO Draws Capital Away From Crypto
Market analysts also pointed to the record-breaking SpaceX IPO as another factor weighing on digital assets.
The aerospace company raised $75 billion in its public offering, attracting significant investor attention and potentially diverting capital that may have otherwise flowed into cryptocurrencies.
Both retail and institutional investors were seen positioning for the SpaceX listing, contributing to weaker demand across the crypto sector.
Altcoins Post Mixed Performance
The broader cryptocurrency market delivered mixed results as bargain hunters selectively returned to digital assets.
Ether, the second-largest cryptocurrency by market capitalization, slipped 0.1% to $1,653. Meanwhile, XRP gained 1.4% and continued to outperform several major digital assets.
Other leading cryptocurrencies also traded modestly higher. Solana, Cardano, and BNB posted gains ranging from 0.1% to 2.4%.
Among meme coins, Dogecoin rose 0.6%, while the TRUMP token advanced 2.3%.
Outlook for Bitcoin
While improving geopolitical sentiment helped Bitcoin recover part of its recent losses, institutional outflows and competition from high-profile investment opportunities continue to limit upside momentum.
Investors will likely remain focused on developments surrounding the potential US-Iran peace agreement, ETF fund flows, and broader risk appetite as they assess Bitcoin’s next major move.
