Bitcoin fell 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 jobs data while monitoring the intensifying conflict involving Iran.
The decline in cryptocurrency prices reflects a broader shift toward caution as traders reassess risk exposure across asset classes.
Altcoins follow Bitcoin down
Losses have been widespread in the cryptocurrency market.
Ethereum fell almost 5% to $1,986.89, while XRP fell around 5% to $1.36.
Other major tokens also saw notable losses. Solana fell 6.6%, while Cardano and Polygon each fell around 5.5%.
The broad pullback in digital assets occurred as investors reduced their exposure to riskier assets amid increased uncertainty in global markets.
A week of strong fluctuations
Bitcoin saw significant price fluctuations throughout the week.
The cryptocurrency traded in a range of around 14%, falling to around $65,000 on Monday before rising back above $74,000 on Wednesday.
On Friday, the token had retreated again as selling pressure returned.
Market volatility intensified as geopolitical tensions rippled through global financial markets.
Cryptocurrencies are particularly sensitive as investors seek to shed risk during times of instability.
War adds to market anxiety
The conflict involving Iran has entered its seventh day following coordinated strikes by the United States and Israel 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 about 20% of the world’s oil supply.
Energy markets reacted strongly. Oil prices have jumped more than 16% this week as traders assess the potential for supply disruptions if the conflict worsens further.
Rising crude prices have reinforced fears of a further acceleration in inflation, complicating the outlook for monetary policy.
Focus on the Fed’s outlook
Economic data released on Friday also influenced sentiment.
Figures from the Bureau of Labor Statistics showed nonfarm payrolls fell 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 reached 4.4% while job losses were spread across several sectors.
Weaker labor market data prompted traders to reevaluate the trajectory of interest rates.
Markets now expect the Federal Reserve’s next rate cut to come as soon as July, with an increasing likelihood of two cuts before the end of the year, according to the CME Group’s FedWatch tool.
Earlier in the day, Federal Reserve Governor Christopher Waller indicated that a weaker-than-expected jobs report could influence the policy outlook.
However, central bank officials have largely maintained a cautious stance after a series of previous rate cuts, preferring to monitor economic conditions and geopolitical developments before further adjusting policy.
Shifting interest rate expectations have helped strengthen the U.S. dollar, another factor weighing on risky assets.
A stronger dollar tends to put pressure on cryptocurrencies and commodities by tightening global financial conditions.
The strengthening greenback also contributed to declines in several other assets this week, with gold on track for a weekly decline despite geopolitical unrest.
