Key Moments
- Bitcoin climbed 1.2% to $66,793.0 by 08:48 ET (13:48 GMT), yet remained down 3% for the week.
- U.S. Q4 2025 GDP grew at an annualized 1.4%, missing expectations of 2.5%, while core PCE inflation rose 3% in December.
- Escalating U.S.-Iran tensions and uncertainty over Federal Reserve rate policy continued to weigh on crypto risk appetite.
Bitcoin Rebounds Modestly After Recent Selloff
Bitcoin saw a mild rebound on Friday, supported by dip-buying after recent declines, but overall sentiment toward cryptocurrencies stayed cautious amid unresolved interest rate and geopolitical risks.
The largest digital asset was on track to end the week in negative territory, with the brief recovery seen last week losing momentum. Bitcoin was also carrying a 25% loss so far in 2026.
By 08:48 ET (13:48 GMT), Bitcoin was up 1.2% at $66,793.0. Despite the intraday gain, it was still trading 3% lower for the week and was heading for losses in five of the last seven weeks.
Macro Headwinds: Fed Outlook and Economic Data
Cryptocurrency prices extended their declines this week as demand for speculative assets was hit by growing uncertainty around the future path of U.S. interest rates.
Pressure intensified on Wednesday following the release of minutes from the Federal Reserve’s January meeting, which showed several policymakers backing the possibility of further rate hikes to counter inflation risks. That prospect is typically unfavorable for speculative assets.
A series of mixed readings on inflation and the labor market further clouded the rate outlook. Digital assets are highly sensitive to higher borrowing costs, as they tend to perform better in environments with abundant liquidity.
Additional macro pressure arrived on Friday, when new data pointed to slowing U.S. economic momentum in the fourth quarter of 2025 while inflation stayed elevated in December – a combination that could complicate the Fed’s policy decisions.
U.S. Growth and Inflation Data
Seasonally and inflation-adjusted figures from the Commerce Department showed that U.S. gross domestic product (GDP) expanded at an annualized 1.4% in the fourth quarter. Economists surveyed by Dow Jones had anticipated a 2.5% increase.
Inflation data released alongside the growth report indicated limited progress in price pressures. The core PCE price index, the Federal Reserve’s preferred inflation gauge that excludes food and energy, rose 3% in December. The figure was in line with expectations but remained above the Fed’s 2% target.
| Indicator | Period | Reported | Expectation |
|---|---|---|---|
| U.S. GDP (annualized) | Q4 2025 | 1.4% | 2.5% |
| Core PCE price index | December | 3% | 3% |
Geopolitical Tensions Further Dampen Risk Appetite
Geopolitical risks added another layer of caution for investors, particularly regarding relations between the U.S. and Iran. President Donald Trump maintained his threats of military action if Iran refused to accept a nuclear agreement with the United States.
Multiple reports during the week indicated that the U.S. was weighing various military options against Iran, with American forces already deployed in the region.
The heightened tensions curbed risk appetite for cryptocurrencies, particularly Bitcoin, and encouraged investors to favor the dollar and gold as perceived safe havens.
Altcoins Also Head for Weekly Losses
Trading across the broader cryptocurrency complex remained constrained on Friday, with most major altcoins preparing to close the week lower.
Ether, the second-largest cryptocurrency by market value, added 0.7% to $1,928.30 but was still positioned for a 1.8% weekly decline.
XRP and BNB were set to end the week down about 6% and 2%, respectively. Cardano and Solana were facing weekly losses in the range of 3% to 5%.
Among memecoins, Dogecoin was on course for a 6% drop over the week.
| Crypto Asset | Price Move (Session) | Weekly Performance |
|---|---|---|
| Bitcoin | +1.2% to $66,793.0 | -3% |
| Ether | +0.7% to $1,928.30 | -1.8% |
| XRP | N/A | About -6% |
| BNB | N/A | About -2% |
| Cardano | N/A | -3% to -5% |
| Solana | N/A | -3% to -5% |
| Dogecoin | N/A | -6% |
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