Bitcoin saw a slight dip on Friday, while the broader cryptocurrency market showed minimal change despite a modest improvement in risk sentiment after U.S. President Donald Trump announced a delay in deciding whether to launch an attack on Iran.
The world’s leading cryptocurrency was positioned for a second straight week of small losses, trading in a narrow band since reaching record highs earlier in June. As of 01:58 ET (05:58 GMT), Bitcoin had fallen 0.3% to $104,580.40.
Lower trading volumes reflected the U.S. market holiday on Thursday, and earlier in the week, hawkish comments from the Federal Reserve continued to weigh on crypto investor sentiment.
Bitcoin’s Weekly Trend and Market Reaction to Trump’s Iran Remarks
Bitcoin has decreased about 0.8% over the past week, fluctuating between $103,000 and $108,000 throughout most of June. The market’s reaction was muted after Trump stated he would make a decision within “two weeks” regarding U.S. involvement in the escalating Israel-Iran conflict.
While some risk assets like Asian equities and currencies gained after the announcement, gold prices declined. The delay helped ease fears of an immediate U.S. military strike on Iran, which could have significantly intensified the conflict. Nevertheless, the “two weeks” timeframe remains vague, as Trump has previously used this phrase to postpone critical policy decisions.
Altcoins Remain Rangebound Amid Fed’s Hawkish Tone
Most alternative cryptocurrencies traded within tight ranges on Friday, continuing subdued activity following the Federal Reserve’s recent hawkish stance, which unsettled speculative markets.
- Ethereum remained steady at $2,520.12
- XRP declined 0.2% to $2.15
- Solana edged up 0.2%
- Cardano slipped 0.9%
- Dogecoin fell 1.1%
- Meme token $TRUMP dropped 1.6%
This week, the Federal Reserve maintained interest rates but signaled no imminent easing, citing ongoing inflation risks. While projecting two rate cuts in 2025, the Fed lowered expectations for reductions in 2026.
Prolonged higher interest rates tend to pressure speculative investments like cryptocurrencies by restricting available capital. Aggressive rate hikes by the Fed in 2022 and 2023 previously caused a lengthy downturn in crypto markets, with a partial recovery emerging in late 2023 and into 2024.