Bitcoin experienced a setback on Friday, concluding a week characterized by declining momentum despite certain positive developments. The price retreated 0.5%, settling near $89,517 as of 00:53 ET (05:53 GMT), approaching its lowest point in a month. This reduction comes despite a backdrop of diminishing geopolitical tensions between the U.S. and Greenland and a significant $2.1 billion Bitcoin acquisition disclosed by Strategy Inc.
The cryptocurrency's downward trend persists as market participants weighed competing influences without substantial uplift. During the Asian trading session, risk appetite was muted, partially influenced by a Bank of Japan policy meeting and heightened geopolitical sensitivity following warnings from U.S. President Donald Trump regarding potential military actions in Iran.
In parallel markets, safe-haven assets such as gold and other precious metals surged, reaching record valuations driven by increased physical demand. This divergence saw Bitcoin lagging behind these traditional assets, underscoring contrasting investor priorities amid uncertainty.
Looking at weekly performance, Bitcoin is on track for a decline of about 5%, resisting several supportive signals. Among these was the disclosure from Strategy Inc., recognized as a principal corporate Bitcoin holder, whose substantial investment failed to provide lasting price support. Concerns remain regarding Strategy's long-term sustainability in maintaining its Bitcoin treasury approach, especially given ongoing underperformance in Bitcoin's valuation over recent months.
Complicating the market environment further, the anticipated passage of a cryptocurrency regulatory bill in the U.S. has been delayed. Opposition from key industry players such as Coinbase Global Inc., which criticized the bill's current provisions, has contributed to this stagnation. This regulatory uncertainty has exerted downward pressure on broader cryptocurrency valuations.
Additionally, retail demand for Bitcoin remains subdued. Investors appear diverted by stronger performances in technology stocks, largely driven by enthusiasm surrounding developments in artificial intelligence, which continues to attract a majority of capital inflows. Supporting this observation, the Coinbase Bitcoin premium index indicates that Bitcoin has traded at a consistent discount in the U.S. market relative to the global average since mid-December. This discount reflects a lack of robust retail buying interest in the world's largest Bitcoin market.
The broader cryptocurrency market mirrored Bitcoin’s challenges, with altcoins registering pronounced losses for the week. Ethereum, the second-largest cryptocurrency, declined 2.4% on the day to $2,946.35, culminating in an 11.2% weekly decrease. Other prominent digital assets including XRP and Binance Coin (BNB) fell by 1.5% and 0.1%, respectively, each facing weekly losses between 6% and 8%. Similarly, Solana and Cardano dropped 1.5% each, trailing around 10% in losses for the week.
Within the speculative memecoin segment, Dogecoin declined 1.3%, and the $TRUMP token decreased by 0.9% during the same period.
Amidst this volatility, investors are becoming more discerning, with some turning towards AI-driven stock portfolios that have recently outperformed traditional benchmarks, highlighting shifting preferences within the broader investment landscape.