Bitcoin ticked higher on Friday but remained in a fragile position as investors continued to wrestle with uncertainty over interest rate policy and geopolitical developments. The token rose to $67,843.1 by 01:21 ET (06:21 GMT), yet the modest uptick did little to alter a broader downtrend that has left Bitcoin about 25% lower year-to-date in 2026.
Over the course of the week, Bitcoin was trading down roughly 2.8% and appeared set to record losses in five of the last seven weeks. The limited recovery reflected short-term dip-buying rather than a decisive reversal, with market participants keeping a cautious stance while awaiting fresh economic data and monitoring geopolitical developments.
Pressure on crypto markets intensified after the release of Federal Reserve minutes from the January policy meeting, which showed several Fed officials open to raising interest rates further to mitigate inflation risks. That outcome is widely seen as unfavorable for speculative assets, including cryptocurrencies, which have tended to perform better in periods of abundant liquidity.
Fresh data this week are likely to add clarity - and volatility - as investors anticipate the December PCE price index, the Federal Reserve’s preferred inflation gauge, and fourth-quarter gross domestic product figures. Both prints are expected to factor into market expectations for the path of interest rates and thereby influence the outlook for high-risk assets.
Heightened geopolitical tensions between the U.S. and Iran added another layer of market caution. President Donald Trump reiterated threats of military action should Iran refuse a nuclear accord with the United States. Multiple reports this week indicated that the U.S. was exploring a range of military options, with U.S. forces already deployed in the region. These developments curbed risk appetite, prompting some traders to rotate into traditional safe havens such as the U.S. dollar and gold.
Altcoins broadly mirrored Bitcoin’s weakness and were, in many cases, set for weekly declines. Ether fell 1.5% to $1,954.09 and was on track to lose about 6.2% for the week. XRP and BNB were each trading lower for the week by around 6% and 3%, respectively. Cardano and Solana were poised to drop between 5% and 7% over the same period. Among memecoins, Dogecoin was facing a steeper weekly fall, near 11%.
In sum, the modest rebound in Bitcoin did not signal a clear change in trend. Market participants remain attentive to incoming economic data that could shape rate expectations, while geopolitical uncertainty is weighing on risk appetite across speculative assets.
About the reporter - Nina Shah is a financials analyst covering banks, insurers, and specialty finance. Her work focuses on funding, underwriting, and regulatory dynamics that shape market outcomes.