Investing.com– Bitcoin rose slightly on Friday, benefiting from some dip-buying on recent declines, although sentiment towards cryptocurrencies remained under pressure from interest rate uncertainties and geopolitical risks.
The world’s largest crypto was set for a weekly loss after a brief recovery from last week largely ran out of steam. It was also nursing a 25% loss so far in 2026.
Bitcoin rose to $67,843.1 by 01:21 ET (06:21 GMT). The crypto was trading down 2.8% this week, and was set to lose for five of the past seven weeks.
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Interest rate uncertainty builds ahead of PCE, GDP data
Bitcoin and broader crypto prices clocked extended losses this week as appetite for speculative assets was battered by growing uncertainty over U.S. interest rates.
This came to a head on Wednesday after the minutes of the Federal Reserve’s January meeting showed several policymakers in support of interest rate hikes to curb inflationary risks- a scenario that bodes poorly for speculative assets.
A swathe of mixed inflation and labor market readings also spurred more uncertainty over the outlook for rates. Cryptos are extremely vulnerable to higher rates, given that they tend to thrive in high-liquidity markets.
PCE price index data for December is due later in the day. The print is the Fed’s preferred inflation gauge, and is widely expected to factor into long-term expectations for rates.
Fourth-quarter gross domestic product data is also due later in the day.
Iran tensions hurt risk appetite
Adding to the risk aversion was heightened geopolitical uncertainty between the U.S. and Iran. President Donald Trump kept up his threats of military action against the Middle Eastern country if it did not accept a nuclear deal with the United States.
A host of reports this week showed the U.S. considering several military options against Iran, with Washington having already deployed its forces in the region.
The geopolitical tensions sapped risk appetite for cryptos, especially Bitcoin, and saw traders stick to the dollar and gold as havens.
Crypto price today: altcoins set for weekly declines
Broader crypto prices moved in a tight band on Friday, with most altcoins also nursing another week of losses.
World no.2 crypto Ether fell 1.5% to $1,954.09, and was set to lose 6.2% this week.
XRP and BNB were trading down about 6% and 3%, respectively, for the week, while Cardano and Solana were set to lose between 5% and 7%.
Among memecoins, Dogecoin was set for a 11% weekly slide.
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