Bitcoin fell on Friday as renewed hostilities between the U.S. and Iran in the Strait of Hormuz reduced appetite for risk-sensitive assets, with most major cryptocurrencies moving lower alongside the largest token.
By 01:52 ET (05:52 GMT), bitcoin was down 1.7% at $79,679.8, though it remained up 1.3% for the week, positioning it for a sixth consecutive weekly gain. Market participants attributed the week-to-date resilience to sustained institutional buying, opportunistic bargain demand, and signs of legislative progress in Washington on a key regulatory measure.
Market drivers
The session was dominated by geopolitical developments after the U.S. military said it had struck back against Iranian forces following attacks on three American warships transiting the Strait of Hormuz. Those actions followed Iranian claims that the U.S. had violated a ceasefire by striking Iranian vessels and civilian areas earlier in the week. The escalation occurred amid a U.S. operation intended to restore commercial traffic through the strait, an operation the U.S. President reportedly paused days after its initiation. Iran had criticized the operation and appeared to be seeking to formalize control of the waterway, heightening investor caution.
Thursday's military exchanges largely eclipsed comments from both sides indicating that negotiations were proceeding well, and earlier reports this week that a deal was near.
Corporate and regulatory pressure
Cryptocurrency markets also faced pressure from corporate and regulatory developments. Strategy Inc, a prominent corporate holder of bitcoin, informed the market that it could sell some of its bitcoin holdings to generate funds for dividends. The company did not specify the extent or timing of any potential sales, leaving uncertainty about the scale of supply that could reach markets.
Separately, the U.S. Treasury has reportedly demanded that the world’s largest crypto exchange comply with a monitoring program it previously agreed to after pleading guilty to charges related to sanctions and anti-money-laundering failures. The demand was linked to reporting that more than $1 billion in crypto may have flowed through the exchange to entities connected to Iran in 2024 and 2025. The exchange's native token, BNB, fell 1.7% on Friday.
Altcoin performance
Broad crypto markets tracked bitcoin lower as risk aversion increased. Ether, the second-largest token, fell 2.6% to $2,275.58. XRP declined 2.3% to $1.3825. Solana and Cardano moved down 1.2% and 2.2%, respectively. Among memecoins, Dogecoin dropped 4.9%, while the token $TRUMP rose 0.9%.
Outlook and context
Market participants will weigh geopolitical developments, potential corporate sales from large holders, and regulatory scrutiny of major trading venues as they assess near-term supply-demand dynamics for crypto assets. While bitcoin’s weekly gain streak underscores continued institutional interest and underlying demand, the combination of geopolitical risk and uncertainty around potential sales and exchange monitoring introduces elevated near-term volatility for crypto markets.
Reporter: Nina Shah