Bitcoin holds above $70,000 but is set for its first weekly decline since the Iran conflict began.

Bitcoin held above $70,000 on Friday after dipping below $69,000 the previous day, ending a nearly two-week winning streak as risk assets faced pressure.

Initially unaffected by the Middle East conflict, cryptocurrencies have recently felt the impact of rising oil prices, while cautious central bank commentary suggesting sustained higher interest rates also weighed on sentiment. By 18:17 ET (22:17 GMT), Bitcoin was up 1% at $70,843.9, having hit a low of $68,814.4 on Thursday.

Analyst Iliya Kalchev of Nexo Dispatch noted that $70,000 is a key level—holding it could stabilize prices and relieve pressure on leveraged positions, while a break could open the path to the next support zone. On-chain data show long-term holders are selling less, indicating a slowdown in distribution. However, miners remain a vulnerable segment, and overall on-chain activity is down, with trading shifting toward derivatives and ETFs, making price discovery more influenced by macro factors than direct demand.

Equities and other risk assets have been hit hard this week amid escalating Middle East tensions, dragging crypto down with them. Reports indicate the U.S. is exploring troop options in Iran. CBS News reported that Pentagon officials have detailed plans for potential ground deployments, while Reuters noted additional Marines and sailors are being sent to the region.

Oil prices surged, with Brent crude reaching $119 on Thursday, after Israel attacked Iran’s South Pars gas field and Tehran retaliated against regional energy infrastructure. Although the U.S. and allies have sought to ease supply concerns near the Strait of Hormuz, Treasury Secretary Scott Bessent indicated sanctioned Iranian oil already at sea may be allowed into markets, and further Strategic Petroleum Reserve releases remain possible. Israeli Prime Minister Benjamin Netanyahu also pledged to refrain from further strikes on Iranian energy sites.

Federal Reserve signals also influenced crypto sentiment. While the Fed kept rates unchanged, higher energy costs fueling inflation expectations pushed back the timing of potential rate cuts. The European Central Bank and Bank of England similarly maintained rates, taking a wait-and-see approach amid the Middle East crisis.

Most altcoins mirrored Bitcoin’s recovery. Ethereum gained 1% to $2,160, XRP fell slightly to $1.4483, Solana rose 1.4%, Cardano edged up 0.2%, and Dogecoin climbed 1.5%.

Sources: Anuron Mitra