Key Points:
- Bitcoin prices climbed 1.7% to $73,061.2, putting the cryptocurrency on track for a massive 9% weekly gain.
- The United States and Iran plan to hold peace talks in Pakistan despite ongoing disagreements over the Strait of Hormuz.
- Consumer prices jumped 0.9% in March because gasoline costs surged 21.2% during the Middle East conflict.
- Core inflation rose just 0.2%, giving the Federal Reserve a reason to look past the sudden energy price spike.
Bitcoin ended the week with a massive rally. The world’s largest cryptocurrency jumped 1.7% to reach $73,061.2 late Friday afternoon. This late surge puts Bitcoin on track for a 9% weekly gain, making it the best trading week for the digital asset since October 2025. Investors rushed to buy riskier assets after the United States and Iran agreed to a temporary military ceasefire.
Crypto markets also received a boost from friendly news out of Washington. Traders felt optimistic about new digital asset regulations making their way through the government. While lawmakers still need time to pass the CLARITY Act, investors believe the political environment looks much better for crypto companies right now.
Traders locked their focus on the Middle East. The United States and Iran plan to hold formal ceasefire talks in Pakistan over the next few days. Earlier this week, both countries agreed to stop fighting conditionally. However, tensions flared up almost immediately. Iranian officials accused the United States and Israel of breaking the new agreement and demanded they include Lebanon in any final peace deal.
The peace talks face several major roadblocks. Iranian state media reported that their delegates suspended the trip to Pakistan until they receive firm guarantees regarding Lebanon. Meanwhile, Iran continues to limit commercial shipping traffic moving through the Strait of Hormuz. This decision angered President Donald Trump. Iran wants to charge a cash toll for ships passing through the waterway, a demand Washington completely rejects. The United States also wants Iran to stop its nuclear program and surrender its uranium, which Tehran refuses to do.
Back in the United States, fresh economic data showed exactly how much this conflict cost average consumers. The Bureau of Labor Statistics reported that consumer prices jumped sharply in March. The headline Consumer Price Index climbed 0.9% for the month. This pushed the yearly inflation rate to 3.3%, the highest level recorded since April 2024. The massive jump matched the exact estimates predicted by Wall Street analysts.
Energy costs drove almost all of this recent inflation spike. Total energy prices surged 10.9% in March, while gasoline prices alone skyrocketed 21.2%. Gas prices accounted for nearly three-quarters of the total increase in inflation. However, the core inflation numbers looked much better. When the government excluded volatile food and energy costs, core prices rose just 0.2% for the month and 2.6% for the year. Both core figures came in slightly below expert forecasts.
Energy costs started falling in April after the ceasefire took hold. This drop gives Federal Reserve officials a reason to ignore the March energy shock. They can now focus on the long-term inflation trend instead. Usually, high inflation stops the central bank from cutting interest rates. High interest rates make it harder for risky assets like Bitcoin to gain value because investors prefer safer government bonds.
Gracy Chen, the chief executive officer at crypto exchange Bitget, warned that the March energy shock will ripple through the global economy for a long time. She thinks this economic damage makes the Federal Reserve less likely to cut rates soon. Chen noted that higher inflation drains dollar liquidity from the market, creating a difficult environment for crypto. However, she pointed out that Bitcoin withstands these shocks better than other digital coins because wealthy investors use it to maintain market exposure during tough times.
Other digital currencies followed Bitcoin higher on Friday. Ether, the second-largest cryptocurrency in the world, rose 2.6% to reach $2,255.02. XRP added 0.7% to hit $1.3611. Solana climbed 1.6% during the afternoon trading session. Cardano and BNB saw very little movement and ended the day flat. Dogecoin managed a 0.9% gain, while the TRUMP memecoin dropped more than 3%.
