Bitcoin fell on Friday amid the military escalation between the US and Iran in the Strait of Hormuz, dampening appetite for risky assets. The broader cryptocurrency market also declined.
Nevertheless, the world's largest cryptocurrency remains poised to complete its sixth consecutive week of gains, fueled by active institutional buying, demand for depreciated assets, and some progress by US lawmakers in passing a key regulatory bill.
Bitcoin fell 1.7% to $79,679.8 as of 8:52 AM Moscow time, having gained 1.3% for the week, marking its sixth consecutive week of gains.
Adding further pressure on the cryptocurrency was the announcement by the largest corporate Bitcoin holder, Strategy Inc (NASDAQ:MSTR), that it may sell some of its holdings to pay dividends, although the volume and timing of the potential sale have not yet been specified.
US-Iran Escalation Puts Pressure on Risky Assets
Risk markets retreated on Friday after the US military announced a retaliatory strike against Iran following attacks on three US warships transiting the Strait of Hormuz.
This follows Iran's accusation that the US violated the ceasefire by attacking Iranian vessels and civilian targets this week.
The new round of tensions was triggered by the US operation to restore commercial shipping in the Strait of Hormuz, although President Donald Trump announced the suspension of the operation several days after its launch.
Iran generally condemned the operation and is reportedly seeking to consolidate its control over the Strait of Hormuz.
Thursday's military escalation effectively overshadowed statements by both sides that negotiations were progressing well. Earlier this week, there were reports that a deal was close.
Binance under scrutiny from US Treasury Department for sanctions violations - media
Binance, the world's largest cryptocurrency exchange, received a letter from the US Treasury Department demanding it comply with a monitoring program amid reports that $1 billion worth of cryptocurrency was transferred through the exchange to entities linked to Iran, The Information reported on Thursday.
The Treasury Department demanded that Binance comply with the so-called monitoring program, which the exchange agreed to in 2023 after pleading guilty to violating sanctions and anti-money laundering laws.
The letter stems from reports that more than $1 billion was transferred through the exchange to entities linked to Iran between 2024 and 2025.
Binance's native cryptocurrency, BNB, fell 1.7% on Friday.
Crypto Market Today: Altcoins Fall Amid Iran Tensions
The broader cryptocurrency market fell on Friday, following Bitcoin as tensions surrounding Iran weighed on risk assets. Most altcoins also ended the week flat.
Ether, the second-largest cryptocurrency by market cap, fell 2.6% to $2,275.58, while XRP fell 2.3% to $1,3825.
Solana and Cardano fell 1.2% and 2.2%, respectively.
Among memecoins, Dogecoin fell 4.9%, while $TRUMP rose 0.9%.