Bitcoin declined on Friday, trading below the $64,000 level, as uncertainty over the trajectory of U.S. Federal Reserve interest rates and persistent geopolitical tensions in the Middle East kept investors on the sidelines, despite a sharp rally in AI-related tech stocks.
The world's largest cryptocurrency was last down 1.9% at $63,782.0 as of 16:01 Moscow time.
Bitcoin was heading for a nearly 10% monthly gain in July after falling more than 20% in the previous month.
Traders assess Fed rate prospects, risks of war in Iran.
Bitcoin showed a muted reaction to the Fed's decision earlier this week to hold interest rates steady.
While policymakers kept borrowing costs unchanged, investors received little clarity on the timing of future moves.
Bitcoin's subdued movement contrasted with a strong rebound in global tech stocks, led by positive earnings reports from Microsoft, which reignited optimism about artificial intelligence spending.
U.S. stocks surged overnight, with the NASDAQ jumping nearly 3%, though crypto assets largely sat out the risk-on rally.
Asian stock markets also rose on Friday, with South Korea's KOSPI gaining more than 16%.
Market participants also remained wary of rising tensions in the Middle East following recent hostile actions between the U.S. and Iran, which kept oil prices elevated and fueled concerns that persistent inflation could delay monetary policy easing.
Higher energy prices are seen as a risk to inflation forecasts, potentially limiting the Fed's ability to cut rates later this year.