Bitcoin (BTC) Price: Momentum Stalls as Fed Rate Fears and U.S.-Iran Tensions Weigh on Markets

TLDR

• Bitcoin climbed toward $68,000 during Asia trading on Friday after a choppy week
• The Federal Reserve’s January meeting minutes showed policymakers divided on rates, with some suggesting hikes may return if inflation stays high
• U.S.-Iran geopolitical tensions added to risk-off sentiment, boosting gold near $5,000
• Large Bitcoin holders sent record inflows to Binance, a pattern that can signal selling into strength
• Spot Bitcoin ETFs saw $166 million in outflows on Feb. 19, marking three straight days of net outflows

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Bitcoin pushed toward $68,000 during Asia’s Friday morning session, recovering from a rough week across crypto markets.

Bitcoin (BTC) Price

The bounce was broad. XRP, Solana, Dogecoin, and Cardano each added up to 2%. Ether was the outlier, slipping below $2,000 as traders treated that level as one to defend rather than build on.

On Thursday, Bitcoin had already risen 1.1% to $66,989, but gains were kept in check by a more cautious read of the Federal Reserve’s January meeting minutes.

The minutes showed Fed policymakers growing more divided. Some suggested rate hikes could return if inflation stays stuck above target. Others said cuts would only resume if inflation keeps falling as expected.

That language put rate hikes back on the table for some traders, even if they’re not the base case.

The dollar strengthened following the Fed minutes, pulling some traders away from risk assets like Bitcoin.

ETF Outflows Add Pressure

Spot Bitcoin ETFs recorded $166 million in net outflows on Feb. 19, the third consecutive day of outflows. Spot Ethereum ETFs saw $130 million in outflows the same day, with BlackRock’s ETHA accounting for $96.80 million of that total.

These numbers reflect a broader pullback in institutional appetite for crypto exposure in the short term.

Big Holders Signal Possible Selling

On-chain data from CryptoQuant shows Bitcoin inflows from large holders to Binance have hit record levels. That pattern has historically appeared before periods of heavier spot selling.

Research firm K33 has drawn comparisons between current market conditions and the later stages of the 2022 bear market, which led into a long period of sideways consolidation.

Geopolitics added another layer of caution. President Trump said he would allow 10 to 15 days for nuclear talks with Iran, while U.S. forces reportedly built up in the region. Gold steadied near $5,000 an ounce as investors sought safer assets.

FxPro analyst Alex Kuptsikevich said the setup raises the odds of a retest of local lows last seen in the second half of 2024.

Bitcoin inflows from large holders to Binance reaching record levels remains the most closely watched near-term signal heading into the weekend.

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