The cryptocurrency market extended its recovery, with total market capitalization rising to $2.2 trillion as the latest rally resumed after a brief pause.

The advance has established a gradual uptrend since July 8, forming part of a broader recovery that began from the lows recorded in late June.

IOTA, Aave, and Zcash led the gains among the most actively traded cryptocurrencies over the past 24 hours, climbing 7.9%, 6.8%, and 6.7%, respectively.

Meanwhile, Tron, Theta Network, and Hedera ranked among the weakest performers, although their losses were relatively modest, highlighting the broad-based nature of the market's gains.

Market capitalization climbs to $2.2 trillion as Bitcoin tests $64,000

Bitcoin has returned to trade near recent local highs around $64,000, with buyers showing increasing interest whenever prices retreat toward the $62,000 area.

Analysts view Bitcoin's resilience as a constructive signal for the broader cryptocurrency market, although significant resistance levels remain overhead.

They also believe that thinner liquidity over the weekend could pave the way for a breakout above $66,000 if improving technical signals continue to attract risk-oriented investors.

Ethereum faces key resistance near $1,800

Ethereum's recovery, however, has slowed after reaching the 50-day moving average near $1,800 at the beginning of the month.

The area has become an important technical level after acting as a turning point for prices last month and serving as a major support zone in February.

ETH/USD has yet to confirm a decisive breakout from its downtrend following the rebound from June lows, as the previous support level has now turned into strong resistance.

Analysts say that holding above the 50-day moving average, currently around $1,770, would provide a bullish short-term signal, while a break above $1,800 would confirm the start of a more sustained upward trend.

Market data: Bitcoin remains below realized price as stablecoin liquidity declines

Glassnode reported that Bitcoin has traded below its realized price of $76,600 for nearly five months.

The analytics firm noted that extended periods below the realized price have occurred only a handful of times in Bitcoin's history and have often preceded the formation of long-term market bottoms.

Meanwhile, CryptoQuant said USDC reserves on Binance declined 21.6% over the past month, while Ethereum recorded unusually large one-day USDT outflows.

Analysts believe the decline in stablecoin liquidity is reducing the market's buying power and increasing the potential for higher volatility.

Separately, US Commodity Futures Trading Commission (CFTC) Chairman Michael Selig described Bitcoin as "one of the most resilient assets," noting that it has repeatedly weathered major crises and regulatory crackdowns.

He argued that Bitcoin should be treated as a commodity, similar to gold, silver, and oil, while urging the US Congress to move quickly on the proposed CLARITY Act.

In industry developments, BitGo is preparing to launch new quantum-resistant Bitcoin wallet tools for institutional clients in the coming weeks. The offering will include address risk assessments, automatic migration of funds from vulnerable wallets, and a new unspent transaction output (UTXO) selection mechanism.

Robinhood Chain DEX also recorded a milestone, reaching $564 million in trading volume just one week after launch, driven by strong demand for meme coins.

The network, built on Arbitrum's Layer 2 infrastructure, is focused on real-world assets (RWAs).

Overall, the cryptocurrency market continues to recover, with total market capitalization reaching $2.2 trillion and Bitcoin holding near $64,000. Ethereum, however, continues to face strong technical resistance around $1,800 as investors await a decisive breakout above key resistance levels.

Oil prices rose on Friday and remained on track for strong weekly gains as concerns over energy supplies persisted following renewed hostilities between the United States and Iran, which have disrupted shipping through the Strait of Hormuz.

Brent crude futures rose 60 cents, or 0.8%, to $76.90 a barrel by 11:31 GMT, while US West Texas Intermediate (WTI) crude gained 46 cents, or 0.6%, to $72.54 a barrel.

On a weekly basis, Brent is on track to gain nearly 7%, while WTI is set to rise around 6%.

"The market has pulled back from the highs reached earlier this week, but the geopolitical risk premium remains elevated because traffic through the Strait of Hormuz has nearly come to a standstill, and there is still no clear indication of when normal shipping operations will resume," said Vandana Hari, founder of Vanda Insights.

Shipping disruption in the Strait of Hormuz supports prices despite easing military escalation

The latest developments followed Iranian military strikes on Thursday targeting US military infrastructure in Gulf states in retaliation for American attacks on Iran's southern and eastern coastal provinces, adding further strain to the fragile ceasefire agreement.

In a separate development, Iranian media reported several explosions in southern Iran, including in the Bushehr area, home to one of the country's nuclear power plants.

The International Energy Agency said in a report released on Friday that the latest escalation between the United States and Iran could undermine its previous expectations of a sizeable oil market surplus next year.

The conflict has also delayed the full reopening of the Strait of Hormuz, through which around 20% of global daily oil and liquefied natural gas supplies passed before the war began on February 28.

Giovanni Staunovo, analyst at UBS, said the absence of additional US strikes on Iran overnight put some pressure on oil prices, although the continued slowdown in shipping flows through the Strait of Hormuz limited the downside.

Ship-tracking data showed that liquefied natural gas carriers continued transiting the strait in recent days, although overall daily shipping volumes remain well below normal levels.

US President Donald Trump said this week that he does not believe the war will resume, adding that "any developments that do occur will end very quickly."

"Although the United States has intensified its attacks on military targets inside Iran, markets have taken some comfort from the Trump administration's decision to avoid targeting Iran's energy infrastructure," said Daniel Hynes, Senior Commodity Strategist at ANZ.

Separately, the International Energy Agency lowered its forecast for Russian oil production, citing Ukrainian attacks on Russia's energy infrastructure that are expected to weigh on output in the coming months.

Sterling climbed to its highest level in nearly a month against the US dollar on Friday and also reached a one-year high against the euro, as investors assessed how central banks are likely to respond to higher energy prices resulting from the conflict between the United States and Iran.

The pound rose to $1.345, its highest level since June 15, before trimming some of its gains to trade about 0.1% higher.

Meanwhile, the euro slipped to 85.18 pence, its weakest level against sterling since late June 2025, before recovering to trade little changed.

Analysts said sterling's strength in recent weeks has been supported by several factors, including stronger-than-expected UK economic growth, increased foreign acquisitions of British companies, easing political uncertainty, and expectations surrounding Bank of England monetary policy.

Barry van der Laan, Head of FX Strategy at Monex Europe, said comments from Bank of England Chief Economist Huw Pill late on Thursday, indicating that interest rates would need to move higher, provided additional support for the British currency.

"Those remarks reinforced the market's view that the Bank of England has less room to ignore inflationary pressures than either the US Federal Reserve or the European Central Bank," he said.

However, he added that, in the absence of major UK economic data on Friday, sterling is likely to take its direction from movements in the US dollar, oil prices, and developments in the Middle East.

IMF upgrades UK growth outlook as political developments support sterling

The International Monetary Fund this week upgraded its forecast for UK economic growth, projecting the economy to expand by 1.0% in 2026.

The IMF said the outlook for the UK economy, which relies heavily on imported energy, had improved following the agreement reached between the United States and Iran in June and the subsequent decline in oil prices.

The fund also expects the UK to be the third-fastest growing economy in the G7 this year, behind Canada and the United States, outperforming the eurozone economies.

Even so, oil prices have risen around 5% this week following renewed exchanges of strikes between the United States and Iran, alongside Washington's decision to revoke a waiver that had allowed certain transactions involving Iranian oil.

Brent crude was last trading near $76 a barrel, although it remained well below the peak of $126 reached in April.

On the political front, former Greater Manchester Mayor Andy Burnham took a significant step toward becoming the UK's next prime minister after securing overwhelming backing from Labour Party members of Parliament on Thursday to succeed Keir Starmer.

Some analysts believe the clearer leadership outlook, together with Burnham's pledge to maintain fiscal discipline, has provided modest support for sterling. However, they cautioned that UK financial markets could become more volatile once he begins outlining the details of his economic agenda.

Gold prices edged higher in European trading on Friday, extending gains for a second consecutive session, supported by the ongoing weakness in the US dollar as military tensions between the United States and Iran continued to ease.

Despite Friday's advance, the precious metal remains on track for a weekly loss after this week's surge in oil prices reignited inflation concerns and boosted expectations that the Federal Reserve will raise interest rates at least once this year.

The Price

• Gold prices rose 0.3% to $4,134.86 an ounce, from the opening level of $4,123.44, after touching an intraday low of $4,108.81.

• At Thursday's settlement, gold gained 1.15%, posting its first daily advance in four sessions, supported by a weaker US dollar and softer oil prices.

Weekly performance

So far this week, which officially concludes with Friday's settlement, gold prices are down around 1.0%, putting the metal on track for its fifth weekly loss in the past six weeks.

US dollar

The dollar index fell 0.3% on Friday, extending losses for a third consecutive session and reflecting continued weakness in the US currency against a basket of global currencies.

The decline came as safe-haven demand for the dollar eased following successful diplomatic efforts to contain the military escalation between the United States and Iran, with both sides continuing to observe the ceasefire agreement.

Latest developments in the Iran conflict

• Military strikes between the United States and Iran have paused to allow regional mediation efforts to continue.

• US President Donald Trump warned that any further attacks on commercial vessels in the Strait of Hormuz would trigger "much stronger" military strikes.

• A US official revealed that "technical back-channel talks" between Washington and Tehran over the nuclear issue are still ongoing.

• Traffic through the Strait of Hormuz slowed sharply, with only 13 oil tankers and commercial vessels transiting the waterway over the past 24 hours.

US interest rates

• According to CME Group's FedWatch tool, markets are currently pricing a 78% probability that the Federal Reserve will leave interest rates unchanged at its July meeting, with a 22% probability of a 25-basis-point rate hike.

• Markets are also pricing a 19% probability that the Fed will keep rates unchanged at its December meeting, while the probability of a 25-basis-point hike stands at 81%.

• Investors continue to monitor incoming US economic data and comments from Federal Reserve officials for fresh clues that could reshape those expectations.

Gold outlook

Tim Waterer, Chief Market Analyst at KCM Trade, said gold is currently trading in a consolidation range following Thursday's gains, as traders remain hesitant to bet on further upside amid lingering uncertainty over US-Iran relations.

Waterer added that he expects gold to continue attracting buyers on price dips as long as oil prices remain near current levels. However, any sharp rally in crude could reignite concerns over inflation and interest rates, creating headwinds for the precious metal.

SPDR fund

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, increased by 3.14 metric tons on Thursday, bringing total holdings to 1,005.65 metric tons, the highest level since June 25.