Bitcoin Falls to Two-Month Low as Geopolitical Tension Rises and Fed Pauses Rate Cuts: Weekly Crypto Recap

The Fed left interest rates unchanged at 3.25%-3.50%.

Let’s turn back the clock a week. However, Bitcoin tried in vain to break the $90,000 and even $91,000 resistance levels last Friday. The following weekend it was trading sideways around $89,000. However, it felt almost inevitable that the country would collapse in the coming days as US President Donald Trump has issued a new tariff threat, this time against Canada, for 100% taxation.

Needless to say, BTC indeed plummeted on Sunday evening and Monday morning, falling to a five-week low at the time of $86,000. However, the bulls quickly picked up the pace and helped BTC recover over four thousand dollars in the following days. Consequently, the cryptocurrency surpassed $90,000 on Wednesday.

The US Federal Reserve reversed its latest monetary policy and suspended interest rate cuts on Wednesday evening. The event had no immediate effect on bitcoin, but that changed when geopolitical tensions flared up again, predictably involving the US and its president. This time, the POTUS threatened Iran with possible attacks while the US moved several airlines closer to the Middle Eastern country.

Perhaps in response to both developments, BTC started to fall on Thursday evening. Initially it dropped below $86,000, but that was just the beginning. The bears kept the pressure on and the cryptocurrency fell to $81,000 for the first time in more than two months earlier today.

Although it has since recovered to almost $83,000, it is still down more than 7% weekly. Similar losses are clearly visible in ETH, XRP, SOL, DOGE, ADA and BCH. HYPE and CC, on the other hand, have seen huge double-digit gains.

Market data

Market cap: $2.9 trillion | 24H volume: $214 billion | BTC dominance: 57%

You might also like:

BTC: $82,700 (-7.2%) | ETH: $2,730 (-6.2%) | XRP: $1.76 (-7.3%)

This week’s Crypto headlines you shouldn’t miss

Fidelity chooses Ethereum for its new FIDD Stablecoin. One of the world’s largest asset managers and long-time crypto backer – Fidelity Investments – is reportedly launching a new stablecoin called the Fidelity Digital Dollar (FIDD) on the Ethereum blockchain. The new asset will be pegged 1:1 to the dollar and backed by reserves.

SEC sets clear rules for tokenized securities and splits them into two major categories. While the CLARITY Act remains unresolved in the US, the Securities and Exchange Commission has released new guidance to clarify how federal securities laws apply to tokenized securities. It splits such assets into two main types: issuer-sponsored assets and third-party sponsored assets.

Bitcoin Hashrate Plummets as Texas Miners Forced Offline by Ice Storm. The Bitcoin hashrate metric, often described as the backbone of the largest blockchain, dropped significantly again after massive ice storms in some US states, forcing miners to close their facilities. The statistic has dropped from 1,133 ZH/s to 690 EH/s in days.

Crypto traders pile on silver FOMO before 15% crash. While BTC has struggled, silver and gold have recently reached new highs. However, these otherwise more stable assets were also hit by increased volatility over the past week, with some reports claiming that certain crypto traders had joined the silver bandwagon before one of the double-digit crashes.

‘Bitcoin is not in a bull market:’ expert warns that $80,000 was not the bottom. Even before Thursday’s disaster and price drop to $81,000, some market analysts were indicating that BTC’s bull phase had ended and the bottom had not yet been reached.

Crypto funds just raised $1.73 billion – the biggest exit since November 2025. CoinShares’ weekly digital asset fund report showed that investors withdrew more than $1.7 billion from crypto-focused product vehicles last week, the highest level since November.

Charts

This week we have chart analysis of Ethereum, Ripple, Cardano, Binance Coin and Hyperliquid – click here for the full price analysis.