Bitcoin climbed on Friday, marking its fifth consecutive day of gains as expectations for more supportive cryptocurrency regulation in the United States helped counter lingering worries surrounding the Iran conflict.
The world’s largest cryptocurrency rose 1.4% to $71,113.1 by 18:00 ET (22:00 GMT).
Bitcoin on track for weekly gains amid regulatory optimism
Bitcoin was heading for a weekly advance of nearly 6%, outperforming broader risk-sensitive assets despite the uncertainty stemming from the ongoing Iran war.
The rally in the leading digital asset was largely fueled by an announcement on Wednesday that the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission will cooperate to develop a clearer and more comprehensive regulatory framework for U.S. crypto markets.
Through the agreement, the two agencies signaled plans to jointly craft a federal policy that would introduce a “fit-for-purpose regulatory framework for crypto assets and other emerging technologies.”
The initiative, known as the Joint Harmonization Initiative, seeks to establish structured data-sharing practices, simplify reporting requirements, and reduce overlapping enforcement actions between the two regulators.
Although the arrangement is non-binding, the announcement boosted investor confidence that U.S. authorities may move toward clearer and more coordinated regulation for the cryptocurrency sector.
The initiative also aligns with promises by Donald Trump to provide greater regulatory clarity for the crypto industry, with the administration appointing leaders at both agencies viewed as supportive of digital assets.
Crypto markets remain resilient despite geopolitical tensions
Bitcoin has climbed about 6.1% since the United States and Israel launched attacks on Iran in late February. Meanwhile, the second-largest cryptocurrency, Ether, has gained roughly 6.2% during the same period.
According to David Morrison, senior market analyst at Trade Nation, both Bitcoin and Ether have demonstrated notable resilience despite growing negative sentiment toward risk assets.
He noted that the two cryptocurrencies have held up well even as global equities—particularly technology stocks—faced significant selling pressure. At the same time, Bitcoin has been rising alongside the U.S. dollar and crude oil, while traditional safe-haven metals such as gold and silver have struggled.
Morrison added that the rebound may partly reflect technical factors. After reaching an all-time high above $126,000 six months ago, Bitcoin lost more than half of its value, dropping to around $60,000 in early February. That sharp correction left the market technically positioned for renewed buying interest. Whether the recovery proves temporary or develops into a more sustained trend remains uncertain.
Despite the recent gains, broader investor appetite for risk remains subdued, as equity markets have experienced sharp declines amid concerns about the economic consequences of the U.S.–Israel conflict with Iran.
One major concern is the war’s potential inflationary impact. Prolonged disruptions to oil supply could push crude prices higher and contribute to global inflation. Such pressures may force major central banks to adopt a more hawkish policy stance, which could weigh on cryptocurrencies and other speculative assets.
Iliya Kalchev, analyst at Nexo Dispatch, said Bitcoin’s rebound from the mid-$60,000 range to above $72,000 suggests the market has stabilized after a brief period of deleveraging. Open interest has recovered to 687,200 BTC—its highest level since late February—while funding rates and trading volume indicators have turned positive. Meanwhile, implied volatility has dropped to a two-week low of 55%.
Inflation data meets expectations
U.S. inflation figures released earlier showed price pressures broadly in line with forecasts but still above the level preferred by the Federal Reserve.
The Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, rose 0.4% month-on-month in January, matching expectations. On an annual basis, core PCE increased 3.1%, also in line with estimates and still well above the central bank’s 2% target.
The Fed closely monitors the core PCE index because it reflects a broader range of consumer spending than the Consumer Price Index and captures shifts in purchasing behavior.
Earlier data from the U.S. Department of Labor showed that February’s headline CPI rose 2.4% year-on-year, while core CPI increased 2.5%—the lowest reading since March 2021, though still above the Fed’s target.
The Federal Reserve is scheduled to announce its next interest-rate decision on Wednesday, with markets currently pricing in an almost certain probability that the Federal Open Market Committee will keep rates unchanged.
Altcoins mostly higher, $TRUMP token surges
The broader cryptocurrency market also moved higher on Friday in line with Bitcoin.
Ether gained 1.3% to $2,089.11, while XRP rose 1.2% to $1.3950. BNB, Cardano, and Solana increased 0.6%, 0.8%, and 2.2%, respectively.
Among memecoins, Dogecoin added 1.4%, while the $TRUMP token surged 30%. The rally followed news of an exclusive cryptocurrency and business conference at Mar-a-Lago, where President Donald Trump is expected to deliver a keynote speech, prompting traders to accumulate the token ahead of an April 25 gala luncheon.
Despite the recent rebound, most altcoins—like Bitcoin—remain significantly below their highs from recent months, with overall sentiment toward the crypto sector still fragile.
Sources: Anuron Mitra
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