Bitcoin fell below $78,000 on Friday but remains on track for a fourth consecutive weekly gain,
supported by steady institutional inflows, while escalating geopolitical tensions and a sharp rise in oil prices limited momentum.
The world's largest cryptocurrency was trading down 0.3% at $77,794.4 by 11:00 AM ET.
Bitcoin briefly climbed above $79,000 on Wednesday and was poised for a 4% weekly gain, its fourth consecutive weekly gain.
Get premium crypto market analysis with InvestingPro
SoSoValue data showed that spot Bitcoin exchange-traded funds (ETFs) traded in the US continued to attract significant inflows, recording nearly $1 billion in net inflows over the past week, one of the strongest weekly performances since January.
Total net inflows into Bitcoin ETFs now exceed $58 billion, with total assets at or above $100 billion, highlighting the scale of institutional investor participation.
Hormuz Risks Remain, Oil Above $100 Per Barrel
Market sentiment remained volatile as tensions in the Middle East persisted despite the extension of a three-week ceasefire between Israel and Lebanon.
Concerns over the Strait of Hormuz—a critical artery for global oil supplies—continued to dominate investor focus, with disruptions and military activity heightening uncertainty.
Oil prices remained elevated, with Brent crude rising above $106 per barrel, fueling inflation concerns and putting pressure on risk-sensitive assets such as cryptocurrencies.
Bitcoin has shown resilience in recent trading sessions, rising alongside risk assets early in the week on optimism about the development of the ceasefire.
The dollar also strengthened on Friday amid demand for safe-haven assets, reflecting the general caution in financial markets, while global stock indices traded mixed.
Furthermore, according to Reuters, internal Pentagon emails outlined options for punishing allies seen as uncooperative during the US-Iran conflict, including the potential removal of Spain from key NATO roles.