Bitcoin Holds Above $63K as US-Iran Peace Hopes Support Crypto Market
Bitcoin traded higher on Friday and was on track to post modest weekly gains as investors reacted positively to signs of progress toward a potential peace agreement between the United States and Iran.
Despite the improvement, the cryptocurrency market remained under pressure, with Bitcoin still hovering near its yearly lows as institutional investors continued pulling money from spot Bitcoin exchange-traded funds (ETFs).
Bitcoin Gains as Markets React to Peace Deal Optimism
Bitcoin rose 0.9% to $63,308 during Friday’s trading session, recovering some ground after a sharp 17% decline last week. The world’s largest cryptocurrency managed to stay slightly positive for the week as broader financial markets rallied.
Investor sentiment improved after President Donald Trump announced that the United States had reached a peace agreement with Iran that could potentially be finalized as early as this weekend. According to Trump, the proposed deal would end the conflict and lead to the immediate reopening of the Strait of Hormuz.
However, officials in Tehran offered a more cautious assessment. Iranian media reported that while negotiations had made progress, several unresolved issues remained, and Iran had not yet made a final decision regarding the agreement.
Even so, Trump’s comments boosted risk assets worldwide. Stock markets in both the United States and Asia moved higher, while oil prices declined sharply. Lower energy prices helped ease concerns about inflation and the possibility of prolonged high interest rates.
Ongoing Geopolitical Risks Remain
While investors welcomed the possibility of a peace deal, uncertainty remains elevated.
Trump has previously suggested that an agreement with Iran was close, only for negotiations to stall. Additionally, military tensions in the Middle East persisted, with reports indicating that Iran launched drone attacks near shipping routes in the Strait of Hormuz on Friday.
As a result, many investors remain cautious despite the recent improvement in market sentiment.
Bitcoin ETFs Extend Losing Streak
A key factor limiting Bitcoin’s upside has been continued selling pressure from institutional investors.
According to data from SoSoValue, spot Bitcoin ETFs are heading for a fourth consecutive week of net outflows. Although withdrawals slowed compared to previous weeks, investors still removed substantial capital from the sector.
As of Thursday, spot Bitcoin ETFs recorded weekly outflows of approximately $401.7 million. While significant, this was notably lower than the $1.72 billion in outflows reported during the previous week.
Many institutional investors appear to be rotating capital away from cryptocurrencies and into sectors with stronger growth prospects, particularly artificial intelligence stocks.
SpaceX IPO Draws Investor Attention
Another factor weighing on crypto markets has been investor enthusiasm surrounding the highly anticipated SpaceX initial public offering.
SpaceX reportedly raised $75 billion during its IPO process on Thursday, attracting considerable attention from both retail and institutional investors. Market analysts believe the offering diverted capital away from cryptocurrencies as investors sought exposure to one of the year’s most anticipated public listings.
The growing interest in AI-related companies and major IPO opportunities has reduced demand for digital assets in recent weeks.
Altcoins Follow Bitcoin Higher
Most major cryptocurrencies posted modest gains alongside Bitcoin on Friday.
Ethereum, the second-largest cryptocurrency by market capitalization, rose 1.5% to $1,668. XRP gained 2% and traded above $1.13.
Solana and Cardano each advanced more than 2%, while BNB added around 1.5%.
Among meme coins, Dogecoin climbed 2.7%, while the TRUMP token delivered one of the strongest performances of the day, surging more than 18%.
Crypto Market Outlook
Bitcoin’s recovery above $63,000 reflects improving investor sentiment driven by hopes of easing geopolitical tensions and lower energy prices. However, continued ETF outflows, ongoing institutional selling, and competition from AI stocks and major IPOs continue to limit stronger gains.
The next major move for Bitcoin and the broader cryptocurrency market will likely depend on developments in US-Iran negotiations, ETF fund flows, and overall risk appetite across global financial markets.
