Crypto Market Pulls Back as Bitcoin Slips Toward $68K
Major cryptocurrencies gave up their recent gains heading into the weekend, with several large tokens posting notable losses. Solana fell around 4%, ether dropped 4.4%, and new on-chain data shows that about 43% of bitcoin’s total supply is currently held at a loss.
Bitcoin (BTC) was trading near $67,960 by Saturday morning, down roughly 3.4% over the past 24 hours. The decline marked a sharp retreat from the highs seen earlier in the week and continued a pattern that has emerged in recent months, where late-week selling pressure pushes prices lower as the market approaches the weekend.
Other major cryptocurrencies saw steeper declines. Ether slipped to about $1,974, down 4.4%, while solana dropped 4% to $84.31. Dogecoin lost 2.9% to trade around $0.09, BNB fell 2.6% to $627, and XRP declined 2.2% to roughly $1.37.
Despite the latest pullback, the weekly performance still shows modest gains for several major assets. Bitcoin remains up around 3.6% over the past seven days, while ether has gained about 2.6%. BNB also posted a weekly rise of roughly 2.1%. The strong rally earlier in the week helped the market recover from the shock triggered by escalating geopolitical tensions, even though the late-week drop reduced those gains.
At the same time, the U.S. dollar recorded its largest weekly increase in a year. The currency strengthened as markets began factoring in higher energy prices, persistent inflation, and the likelihood that the Federal Reserve may have less room to cut interest rates.
Björn Schmidtke, CEO of Aurelion, said the shift toward the dollar reflects growing caution among investors.
“As tensions escalated in the Middle East last week, investors quickly moved toward the safety of the U.S. dollar,” Schmidtke said in comments to CoinDesk. “Markets are pricing in higher energy costs and renewed inflation concerns, which could delay potential rate cuts from the Federal Reserve.”
A stronger dollar typically creates challenges for assets priced against it, including bitcoin and other cryptocurrencies.
On-chain data also highlights a fragile market structure. According to Glassnode, about 43% of bitcoin’s circulating supply is currently underwater, meaning those coins were purchased at prices higher than the current market value.
This situation can create selling pressure during rallies. As prices recover, investors who are holding losses often sell when they approach break-even levels, adding supply to the market. That dynamic likely played a role in bitcoin’s inability to sustain its move toward $74,000 earlier in the week, as sellers emerged near higher price levels.
One encouraging sign for the market came from stablecoin activity. Data from Messari showed that net stablecoin inflows jumped by 415% over the past week, reaching $1.7 billion. Daily transfer volumes also rose by nearly 10%.
Those inflows could represent fresh liquidity waiting to enter the market, suggesting that retail investors have not completely stepped away despite the cautious sentiment. However, it remains unclear whether that capital will be deployed into bitcoin soon or if investors are waiting for lower prices before making moves.
Geopolitical developments continue to influence market sentiment. The conflict between the United States and Iran remains unresolved, oil prices are still elevated, and disruptions to shipping in the Strait of Hormuz persist.
Combined with a stronger dollar, persistent inflation pressures, and the possibility of delayed interest rate cuts, the broader macroeconomic environment remains difficult for risk assets.
Although bitcoin briefly surged to $74,000 earlier in the week, the move ultimately ended with prices returning to the same range. The climb from roughly $68,000 to $74,000 and back again highlights a market that remains stuck in a familiar trading band rather than establishing a clear directional trend.
