Bitcoin slipped below $69,000 on Friday as investors weighed a mix of macroeconomic developments and escalating geopolitical tensions in the Middle East.
The world’s largest cryptocurrency fell as much as 4.2% during the session, extending a volatile week for digital assets.
Market participants reacted to weaker-than-expected US labour data while also monitoring the intensifying conflict involving Iran.
The downturn in crypto prices reflected a broader shift toward caution as traders reassessed risk exposure across asset classes.
Altcoins track Bitcoin lower
Losses were widespread across the cryptocurrency market.
Ethereum fell nearly 5% to $1,986.89, while XRP declined about 5% to $1.36.
Other major tokens also posted notable losses. Solana dropped 6.6%, while Cardano and Polygon each fell around 5.5%.
The broad retreat in digital assets came as investors reduced exposure to riskier assets amid heightened uncertainty in global markets.
A week of sharp swings
Bitcoin has experienced large price swings throughout the week.
The cryptocurrency traded in a range of roughly 14%, falling to about $65,000 on Monday before rallying above $74,000 on Wednesday.
By Friday, the token had retreated again as selling pressure returned.
Market volatility has intensified as geopolitical tensions have rippled through global financial markets.
Cryptocurrencies have been particularly sensitive as investors look to shed risk during periods of instability.
War adds to market anxiety
The conflict involving Iran has entered its seventh day following coordinated US and Israeli strikes that triggered retaliatory missile and drone attacks across the region.
The war has raised concerns about the security of shipping routes through the Strait of Hormuz, a key transit route that typically handles around 20% of the world’s oil supply.
Energy markets have responded sharply. Oil prices have surged more than 16% this week as traders weigh the potential for supply disruptions if the conflict escalates further.
The jump in crude prices has added to fears that inflation could accelerate again, complicating the outlook for monetary policy.
Fed outlook in focus
Economic data released Friday also influenced sentiment.
Figures from the Bureau of Labor Statistics showed that nonfarm payrolls declined by 92,000 in February, missing expectations for a gain of 50,000 and falling below January’s revised increase of 126,000.
The unemployment rate rose to 4.4% as job losses spread across several sectors.
The weaker labour market data prompted traders to reassess the trajectory of interest rates.
Markets now expect the next rate cut from the Federal Reserve could arrive as early as July, with a growing probability of two reductions before the end of the year, according to CME Group’s FedWatch tool.
Earlier in the day, Federal Reserve Governor Christopher Waller indicated that a weaker-than-expected employment report could influence the policy outlook.
However, central bank officials have largely maintained a cautious stance after a series of earlier rate cuts, preferring to monitor economic conditions and geopolitical developments before adjusting policy further.
The shift in interest-rate expectations has helped strengthen the US dollar, another factor weighing on risk assets.
A firmer dollar tends to pressure cryptocurrencies and commodities by tightening global financial conditions.
The stronger greenback also contributed to declines in several other assets this week, with gold on track for a weekly drop despite the geopolitical turmoil.
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