Bitcoin Falls Toward $62,000
Bitcoin declined on Friday and headed toward a weekly loss as uncertainty surrounding US-Iran peace talks and concerns about higher interest rates reduced demand for cryptocurrencies.
The world’s largest cryptocurrency fell 2% to $62,687.60 by 01:47 ET. Bitcoin was also on track to lose approximately 2.8% over the week.
Federal Reserve Pressure Hits Crypto Markets
Bitcoin reversed a brief recovery after hawkish signals from the Federal Reserve weakened demand for speculative and risk-sensitive assets.
Expectations that interest rates could remain elevated, or potentially rise further, encouraged investors to reduce their exposure to cryptocurrencies. Most major altcoins also traded lower.
Bitcoin ETF Outflows Continue
Institutional investors withdrew money from spot Bitcoin exchange-traded funds for a sixth consecutive week.
Although the pace of outflows slowed compared with previous weeks, the withdrawals suggested that institutional interest in cryptocurrency remained weak.
Some investors appeared to favour fast-growing artificial intelligence stocks, which they viewed as offering clearer business fundamentals than digital assets.
US-Iran Peace Talks Cancelled
The United States and Iran cancelled peace negotiations that had been scheduled to take place in Switzerland on Friday.
Iranian media reported that Tehran did not send a delegation to the meeting. US Vice President JD Vance, who was expected to lead the American delegation, also withdrew on Thursday evening.
Switzerland’s foreign ministry later confirmed that the planned talks had been cancelled.
Middle East Tensions Create New Uncertainty
Israel’s continuing military action against Hezbollah in Lebanon reportedly remained a major point of disagreement for Iran.
The cancellation came despite the United States and Iran previously signing a 14-point memorandum of understanding. The agreement aimed to end hostilities and reopen the Strait of Hormuz.
Friday’s meeting was expected to begin a 60-day negotiation period focused on Iran’s nuclear programme.
The delay raised doubts about whether the US-Iran agreement would remain in place, particularly as Israel continued to resist parts of the peace process.
However, the United States appeared to be easing its naval blockade against Iran. Oil shipments through the Strait of Hormuz were also beginning to recover.
Ether and Altcoins Trade Lower
The wider cryptocurrency market declined on Friday and was heading toward a relatively weak weekly performance.
Ether fell 2.2% to $1,699.71, while XRP dropped 3.2%.
Solana, Cardano and BNB lost between 2% and 4%. Among major memecoins, Dogecoin declined 2.4%, while the TRUMP token fell 0.9%.
