Bitcoin Edges Higher as Iran Peace Hopes Lift Risk Appetite

Key Moments

Bitcoin Firms but Remains Near Yearly Lows

Bitcoin traded higher on Friday, supported by improved risk sentiment tied to hopes for a peace agreement between the U.S. and Iran, but the advance remained modest as the token hovered close to its lows for the year.

By 02:02 ET (06:02 GMT), Bitcoin was up 0.9% at $63,337.8. The largest cryptocurrency was on pace to gain about 4% for the week, partially recovering from a roughly 17% drop in the prior week. Despite the rebound, upside progress was restrained amid ongoing institutional selling in spot Bitcoin exchange-traded funds.

Broader crypto sentiment was also pressured by a rotation into artificial intelligence-related equities and demand tied to a major initial public offering by SpaceX, which weighed on capital allocations to digital assets.

Trump-Iran Peace Talk Headlines Drive Risk Rally

Digital assets underperformed a wider risk-on move in global markets. Equities in the U.S. and across Asia advanced sharply after U.S. President Donald Trump stated that the U.S. had reached a peace agreement with Iran that could be signed as soon as this weekend.

Trump said the deal would “entail an end to the war with Iran and an immediate reopening of the Strait of Hormuz.”

Reports from Iranian local media, citing the foreign ministry, presented a more cautious stance. Officials acknowledged that some progress toward an accord had been made, but emphasized that disagreements remained and that Tehran had not yet decided whether to approve any deal.

Markets nonetheless reacted positively to Trump’s comments. Risk assets rose while oil prices retreated, tempering worries about energy-driven inflation and the potential for prolonged high interest rates tied to the conflict involving Iran.

At the same time, Trump has made similar claims in the past about an Iran agreement being close, without a concrete deal ultimately emerging. Military tensions in the region also persisted, with Iran seen launching drone strikes on ships in the Strait of Hormuz early Friday.

Persistent Outflows Hit Spot Bitcoin ETFs

Data from SoSoValue on Friday indicated that spot Bitcoin ETFs were headed for a fourth straight week of net redemptions, although the pace of withdrawals appeared to slow compared with the previous week.

The reduced but still sizable outflows underscored sustained selling pressure from institutional investors, who were largely seen rotating out of spot Bitcoin ETFs into what were viewed as more fundamentally robust opportunities, notably artificial intelligence stocks.

Positioning ahead of a “bumper” initial public offering from SpaceX (NASDAQ: SPCX) – which raised $75 billion on Thursday – was also cited as a factor redirecting both retail and institutional capital away from cryptocurrencies.

Altcoins See Muted Moves as Bargain Hunting Emerges

Outside of Bitcoin, broader crypto markets showed only modest strength on Friday. Prices across major altcoins recorded small gains, with some buying interest emerging among investors looking for value after recent weakness.

Ether, the second-largest cryptocurrency by market capitalization, slipped 0.1% to $1,653.22. XRP advanced 1.4% to $1.1296.

Among memecoins, Dogecoin rose 0.6%, while $TRUMP gained 2.3%.

Market Context for Crypto Investors

The combination of tentative diplomatic progress between the U.S. and Iran, shifting institutional positioning, and ongoing ETF outflows left crypto markets struggling to keep pace with the broader rally in risk assets. While Bitcoin and select altcoins showed signs of stabilization and bargain hunting, the asset class continued to face headwinds from competing opportunities in AI-focused equities and high-profile equity offerings.