which has driven up oil prices and added uncertainty to the global inflation and interest rate outlook.

The world's largest cryptocurrency was last down 3.1% at $70,182.6 as of 8:56 AM ET, after briefly climbing above $74,000 earlier this week, leaving it still on track for a 7% weekly gain.

Iran Conflict and Rising Oil Prices in Focus

Cryptocurrency market sentiment remained volatile amid heightened geopolitical tensions after US and Israeli strikes on Iran triggered retaliatory missile and drone attacks across the region, with the war entering its seventh day.

The war also threatened shipping through the Strait of Hormuz, a key global energy chokepoint through which approximately 20% of global oil supplies typically pass, sending shockwaves through commodity markets.

Oil prices have risen sharply since the escalation began, jumping more than 16% this week amid fears of protracted supply disruptions if the conflict continues.

Higher crude oil prices have raised concerns about a new wave of global inflation, complicating monetary policy forecasts. Investors have begun to moderate expectations for an imminent interest rate cut by the US Federal Reserve, as energy-driven price pressures could keep inflation elevated.

The shift in rate expectations helped the US dollar strengthen this week, putting pressure on a range of risk assets. A stronger dollar also weighed on commodities, with gold heading for a weekly decline despite ongoing geopolitical tensions.

Despite the general risk-aversion sentiment, Bitcoin demonstrated relative resilience, holding above the psychologically important $70,000 mark.

Cryptocurrency Prices Today: Altcoins Also Decline

Most altcoins also fell on Friday, continuing their decline amid cautious sentiment.

The world's second-largest cryptocurrency, Ethereum, lost 3% to $2,069.03.

The world's third-largest cryptocurrency, XRP, fell 1.8% to $1.39.

Solana fell 1.6%, while Cardano and Polygon each fell 2.5%.

Among meme tokens, Dogecoin fell 1.8%.