Bitcoin remained below the important $60,000 level on Friday as continued outflows from spot Bitcoin ETFs and concerns about higher U.S. interest rates weighed on market sentiment.
A wider decline in risk-sensitive assets, including equities, also encouraged investors to remain cautious toward speculative investments such as cryptocurrencies.
Bitcoin Struggles Below $60,000
Bitcoin rose by around 1.8% to $59,157.50 during Friday trading. However, the world’s largest cryptocurrency was still down more than 6% for the week.
The limited recovery showed that buyers remained hesitant as investors assessed persistent inflation, tighter monetary policy and weakening demand for crypto investments.
Bitcoin ETF Outflows Continue for Seventh Week
Spot Bitcoin ETFs recorded their seventh consecutive week of net outflows, according to data from SoSoValue.
Investors withdrew approximately $1.35 billion from the funds during the week. Outflows accelerated again after slowing briefly over the previous two weeks.
The continued withdrawals suggest that both institutional and retail demand for Bitcoin has weakened amid growing economic and market uncertainty.
Investors Favour AI Stocks Over Crypto
Investor preference has increasingly shifted toward assets with clearer earnings and growth prospects, particularly artificial intelligence stocks.
AI-related shares have significantly outperformed cryptocurrencies in recent years as enthusiasm surrounding the technology has increased.
Although the AI stock rally experienced some weakness during the week, the decline did not result in a meaningful return of investor capital to Bitcoin or the broader cryptocurrency market.
Higher U.S. Interest Rates Pressure Bitcoin
Crypto prices also remained under pressure after the Federal Reserve delivered a more hawkish policy message.
Inflation data released on Thursday showed that price pressures remained persistent and above the Federal Reserve’s annual target of 2%.
Sticky inflation could encourage the central bank to keep interest rates elevated or consider further rate increases.
Higher interest rates are generally negative for speculative assets such as Bitcoin. Unlike bonds and some other investments, cryptocurrencies do not provide investors with a direct yield.
Binance Fails to Secure EU Crypto Licence
Binance also faced regulatory pressure after reportedly failing to secure a cryptocurrency licence in Greece.
The licence would have allowed the world’s largest crypto exchange to continue operating across Europe under the European Union’s new regulatory framework.
Binance said customers would continue to have access to their assets. The company also plans to seek approval in another EU member state.
MiCA Rules Reshape Europe’s Crypto Market
Under the European Union’s Markets in Crypto-Assets regulation, known as MiCA, cryptocurrency companies must obtain authorisation from an individual member state.
Once approved, firms can use that licence as a passport to offer services throughout the European Union.
The rules are designed to increase oversight of crypto exchanges and reduce risks that could affect investors and financial markets.
Binance’s BNB token slipped by around 0.2% on Friday following the development.
Altcoins Record Limited Gains
The wider cryptocurrency market posted modest gains, although there were few positive catalysts to support a stronger recovery.
Ether traded nearly unchanged at approximately $1,540.27 and remained close to a 14-month low.
XRP gained almost 1%, while Cardano rose by 3.8%. Solana delivered a stronger performance, climbing around 8%.
Among major memecoins, Dogecoin increased by approximately 3%, while the TRUMP token gained 6.8%.
Overall, Bitcoin remains under pressure from persistent ETF outflows, elevated U.S. interest rates and weaker investor appetite for speculative assets. The failure to recover above $60,000 suggests that market confidence remains fragile.
