Bitcoin slipped 0.5% to $89,517, heading for a 5% weekly decline. The drop comes despite a $2.1 billion purchase by Strategy Inc. and eased U.S.-Greenland tensions. Weak retail demand and regulatory delays are overshadowing any positive catalysts for the world's largest cryptocurrency.

Broader crypto prices fell in tandem, with Ethereum down 2.4% to $2,946 and set for an 11.2% weekly loss. The Coinbase Bitcoin premium index shows the asset trading at a consistent discount in the U.S., signaling weak domestic appetite. Capital continues to flow into AI-driven tech stocks instead.

The market's risk-off sentiment was amplified by a Bank of Japan meeting and President Trump's warnings about potential military action in Iran. As safe havens like gold hit record highs, Bitcoin's lag underscores its struggle to act as a hedge during geopolitical uncertainty. Investors now watch for the delayed U.S. crypto regulatory bill.