Bitcoin Rises Above $72K as Markets Watch U.S.-Iran Talks
Bitcoin moved higher on Friday, supported by cautious optimism in global markets ahead of potential ceasefire talks between the United States and Iran.
The world’s largest cryptocurrency gained 1.8% to reach $72,077 by 02:05 ET (06:05 GMT). On a weekly basis, Bitcoin is on track for an approximate 5% gain, driven by improving risk appetite among investors.
Additional support came from expectations of more favorable U.S. crypto regulation, although progress on the proposed CLARITY Act remains uncertain.
U.S.-Iran Talks Remain Key Market Driver
Investor attention is firmly focused on upcoming ceasefire negotiations between Washington and Tehran, expected to take place in Pakistan.
Although both sides agreed to a conditional ceasefire earlier this week, tensions remain high. Iran has accused the U.S. and Israel of violating the agreement and is pushing for Lebanon to be included in any broader peace deal.
Iranian officials have also denied reports that a delegation has arrived for negotiations, stating that talks will remain on hold until further assurances are provided.
Meanwhile, tensions continue around the Strait of Hormuz, where shipping activity remains restricted. Iran has even suggested imposing tolls for passage, a move strongly opposed by the United States.
Inflation Spike Driven by Energy Prices
Recent data showed a sharp increase in U.S. inflation during March, largely fueled by rising energy costs linked to the Iran conflict.
The Consumer Price Index (CPI) rose 0.9% month-over-month, pushing annual inflation to 3.3%, the highest level since April 2024. Energy prices surged by 10.9%, with gasoline prices jumping more than 21%, accounting for the majority of the increase.
However, core inflation—which excludes food and energy—remained relatively stable. Core CPI rose just 0.2% for the month and 2.6% year-over-year, both slightly below expectations.
Federal Reserve Outlook and Market Impact
While headline inflation remains elevated, the moderation in core prices may allow the Federal Reserve to maintain a balanced approach. Energy prices have already begun to ease following the ceasefire, which could reduce inflationary pressure in the coming months.
Higher inflation typically reduces the likelihood of interest rate cuts, a factor that can weigh on risk-sensitive assets such as cryptocurrencies.
Altcoins Follow Bitcoin Higher
The broader cryptocurrency market also posted gains, although momentum remained modest compared to Bitcoin.
Ethereum rose 2.5% to $2,219, while XRP gained 1.3% to $1.3445. Solana advanced around 3%, while Cardano and BNB traded in a relatively narrow range.
Among memecoins, Dogecoin increased by 1.8%, while $TRUMP token declined more than 3%.
