Bitcoin recovered some ground on Friday after bond yields and oil prices retreated, easing pressure on risk assets across the board.

The flagship cryptocurrency rose 0.9% to $82,551 after a week of heavy selling pressure saw it fall as low as $80,544 during Thursday's session, a two-and-a-half week low.

Risk appetite improved on Friday on investor hopes for diplomatic progress in the Middle East conflict. President Trump said in a Truth Social post that the U.S. won't attack Iran before November's midterm elections, citing "productive" discussions. Oil prices eased, which sent the dollar lower and provided some support to bitcoin.

Macro pressure might keep weighing on bitcoin in the short term, said Colin Basco, quantitative strategist at cryptocurrency exchange Coinbase Institutional. "A move in the 10-year [Treasury] toward 5.5% would probably extend the consolidation period," he said. Basco added that any retracing of bitcoin's price towards $72,000 would present a buying opportunity

Investor sentiment on bitcoin subdued significantly this week as stubbornly high yields, a strong dollar, and oil prices above $100 all continue to tame its appeal.

But this week's drop can be mostly attributed to leverage leaving the market, said Joe Sticco, founder of cryptocurrency index provider Cryptex Finance.

"Spot bitcoin ETFs took in about $3 billion over eight straight sessions into late September. If those flows hold up through the volatility, the floor is sturdier than the price suggests," he added.