The cryptocurrency market faced a double blow on Friday as a hotter-than-expected Consumer Price Index (CPI) reading and geopolitical jitters surrounding the U.S.-Iran peace deal triggered a broad sell-off.
Bitcoin Magazine reported that CPI inflation rose by 4.2% in May, intensifying fears that the Federal Reserve may keep interest rates higher for longer. This economic data came as the Fed had already struck a more hawkish tone earlier in the week, dampening appetite for risk assets.
Bitcoin (BTC) fell below $63,000, trading around $62,700, down 1.9% over the past 24 hours and erasing last week's gains. The broader crypto market mirrored the decline: Ether (ETH) dropped 2.3% to $1,695, XRP shed 3.2% to $1.13, Solana (SOL) lost 3.2% to $69, and BNB slid 2.7%. Only Tron (TRX) managed to hold steady among major tokens, while Hyperliquid's HYPE bucked the trend with a weekly gain of 13.2% despite a daily loss.
Asian equities also retreated, with South Korea's KOSPI reversing from a record high to trade 0.6% lower and Australia's ASX 200 falling 1.2%. The unease was fueled by the cancellation of U.S. Vice President JD Vance's planned meeting with Iranian negotiators in Switzerland, as Tehran demanded more proof of implementation before continuing talks. The earlier optimism around the peace deal had helped stabilize crude oil prices, but Brent crude still fell about 9% on the week.
In a note of caution for altcoin enthusiasts, Curve Finance founder Michael Egorov told CoinDesk that the cycle has changed. He argued that institutional money flowing into Bitcoin via spot ETFs before the 2024 halving disrupted the typical altcoin season pattern, and speculative capital instead poured into “useless memecoins.” Egorov advised builders not to count on an altseason for at least three more years and to focus on token economics tied to real project revenue.
Traders now face a tense period, watching for any further policy signals from the Fed and developments in the Iran negotiations, both of which could add to market volatility in the coming days.