Bitcoin slipped on Friday as escalating U.S.-Iran tensions and a fresh wave of U.S. tariffs drained risk appetite, pulling broader crypto lower. The token was still on track for a small weekly gain after a short-lived rebound.
Bitcoin fell 0.5% to $65,463.4 on Friday, dragged down by a broad retreat from risk as U.S.-Iran military tensions escalated and Washington rolled out new trade tariffs. Broader cryptocurrency prices fell alongside it, trimming gains made earlier in the week.
Despite the drop, the world's largest crypto was set to gain about 1% this week after a short-lived rebound. Broader losses in equity markets, amid a rout in high-flying technology and AI shares, also curbed appetite for crypto.
Iran tensions and tariffs weigh on crypto
The U.S.-Iran conflict appeared to enter a new front after Yemen's Iran-backed Houthis attacked two Saudi ships in the Red Sea, raising the risk of oil supply disruptions. Crude prices surged 15% this week, feeding concerns over energy-driven inflation that could push central banks toward a more hawkish stance.
Adding to the caution, the Trump administration announced new tariffs on 60 trading partners, with the levies set to take effect Friday. Oil disruptions and tariffs have little direct effect on Bitcoin, but their potential economic fallout tends to dampen appetite for speculative assets like crypto.
ETF flows send mixed signals
Bitcoin still drew some support from capital flows. Spot exchange-traded funds posted their best weekly inflow since early May, according to data provider SoSoValue. Yet the inflow streak — the longest in nine months — ended with a $225.1 million outflow on Thursday, July 23.
Is the bottom in?
On-chain signals still point to a bearish backdrop, according to AMBCrypto. The bulls' failure to break past the $67k supply zone has handed control back to sellers.
Analyst The Chess Onchain noted that the share of Bitcoin supply in profit sits at 57.5%, short of levels seen at past cycle bottoms. The data suggests Bitcoin has yet to exit its broader bearish regime.
Not everyone agrees. Jan3 CEO Samson Mow told Cointelegraph he believes Bitcoin has already found its bottom, pointing to recovering confidence in the preferred-share products that Bitcoin treasury companies use to raise capital.
Sources: Investing.com, AMBCrypto, Cointelegraph
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