Bitcoin showed little reaction to the Federal Reserve's decision earlier this week to leave interest rates unchanged.
Bitcoin traded virtually unchanged near $64,000 on Friday, as uncertainty over the Federal Reserve's interest rate path and ongoing geopolitical tensions in the Middle East kept investors cautious despite a sharp rise in AI-related tech stocks.
The world's largest cryptocurrency last traded up 0.5% at $64,352.00 as of 9:01 AM.
Bitcoin could have closed July up nearly 10% after falling more than 20% in the previous month.
Traders weigh Fed rate outlook and risks of war with Iran
Bitcoin showed little reaction to the Federal Reserve's decision earlier this week to leave interest rates unchanged. While regulators kept borrowing costs steady, investors received few clues about the timing of future changes.
Bitcoin's muted performance contrasted with a strong recovery in global tech stocks, led by positive Microsoft results that reignited optimism about AI spending.
US stocks rose sharply overnight, with the NASDAQ up nearly 3%, though crypto assets largely failed to capitalize on the surge in risk appetite.
Asian stock markets also rose on Friday, with South Korea's KOSPI rising more than 16%.
Market participants also remained cautious amid escalating tensions in the Middle East following recent clashes between the US and Iran, which have kept oil prices elevated and fueled concerns that persistent inflation could delay monetary easing. Rising energy prices are seen as a risk to inflation expectations, potentially limiting the Fed's ability to cut rates this year.
Institutional demand was a mixed bag. Bitcoin ETFs have seen volatile flows in recent sessions, with a long streak of inflows interrupted by significant outflows as investors revised their interest rate expectations.
Strategy and Coinbase's Quarterly Results in Focus
Investors were also digesting the quarterly results of two closely watched cryptocurrency companies.
Strategy Inc (NASDAQ:MSTR), the largest corporate holder of Bitcoin, posted a second-quarter loss of $8.22 billion as the decline in Bitcoin prices forced the company to book large fair value losses, even though the company increased its Bitcoin holdings by approximately 11% during the quarter. Meanwhile, Coinbase Global (NASDAQ:COIN) shares fell in after-hours trading, as the US-based crypto exchange reported a better-than-expected quarterly loss and weaker revenue, as low digital asset trading volumes weighed on transaction income.
Cryptocurrency Prices Today: Most Altcoins Sideways, Cardano Up 3%
Most altcoins rose on Friday, but traded in narrow ranges.
Ethereum, the world's second-largest cryptocurrency by market cap, gained 0.3% to $1,906.92.
XRP, the third-largest cryptocurrency, rose 0.7% to $1.08.
Solana added 1.1%, while Cardano jumped 3.6%.
Among meme tokens, Dogecoin rose 0.3%.