Bitcoin Pulls Back Toward $68K as Crypto Market Weakens

Cryptocurrency markets moved lower heading into the weekend, with most major tokens surrendering the gains they posted earlier. Solana fell around 4%, ether dropped 4.4%, and new on-chain data shows that roughly 43% of bitcoin’s circulating supply is now held at a loss.

Bitcoin (BTC) was trading near $67,960 by Saturday morning, down about 3.4% over the past 24 hours. The decline marks a sharp pullback from the week’s highs and continues a pattern that has appeared repeatedly in recent months, where selling pressure late in the week pushes prices back toward the lower end of their trading range before the weekend.

Large-cap cryptocurrencies saw even steeper losses. Ether fell 4.4% to about $1,974, while solana dropped 4% to $84.31. Dogecoin slipped 2.9% to roughly $0.09, BNB declined 2.6% to $627, and XRP edged down 2.2% to $1.37.

Even with the recent dip, several major tokens remain slightly higher on a weekly basis. Bitcoin is still up about 3.6% over the past seven days, while ether has gained around 2.6%. BNB has also posted a weekly rise of roughly 2.1%. A strong rally earlier in the week helped the market recover from the initial shock tied to rising geopolitical tensions, though the late-week drop erased some of those gains.

Meanwhile, the U.S. dollar logged its strongest weekly advance in a year. The currency strengthened as markets began factoring in higher energy prices, persistent inflation, and the possibility that the Federal Reserve may have less room to cut interest rates.

Björn Schmidtke, CEO of Aurelion, said investors have increasingly shifted toward the dollar as global uncertainty grows.

“As tensions escalated in the Middle East last week, investors moved quickly toward the safety of the U.S. dollar,” Schmidtke said in comments to CoinDesk. “Markets are now pricing in higher energy costs and renewed inflation risks, which could push potential Federal Reserve rate cuts further down the road.”

A stronger dollar typically creates headwinds for assets priced against it, including bitcoin and other cryptocurrencies.

On-chain data also points to a fragile market environment. According to Glassnode, about 43% of bitcoin’s total supply is currently underwater, meaning those coins were bought at prices above today’s levels.

This situation can add selling pressure during price rebounds. Investors holding losses often use rallies as an opportunity to exit positions once prices approach their entry points. That dynamic may explain why bitcoin was unable to maintain its surge toward $74,000 earlier in the week, as sellers appeared at higher price levels.

One encouraging signal for the market came from stablecoin activity. Data from Messari showed that net stablecoin inflows surged by 415% over the past week to reach $1.7 billion, while daily transfer volumes increased nearly 10%.

Those inflows could represent liquidity waiting to reenter the market, suggesting that investors still have capital available despite the cautious sentiment. Whether that money flows into bitcoin or remains sidelined while traders wait for lower prices remains uncertain.

Geopolitical developments continue to influence the market backdrop. The conflict between the United States and Iran remains unresolved, oil prices are elevated, and disruptions in the Strait of Hormuz are still affecting global energy supply.

Combined with a stronger dollar, lingering inflation concerns, and expectations that interest rate cuts could be delayed, the broader macro environment remains challenging for risk assets.

Although bitcoin briefly touched $74,000 earlier in the week, the move ultimately ended with prices returning to the same trading range. The climb from roughly $68,000 to $74,000 and back again highlights a market that continues to move sideways rather than establishing a clear directional trend.