Bitcoin Price Holds Near $105K as Geopolitical and Fed Risks Loom
Bitcoin remained largely unchanged on Thursday, trading within a narrow range as growing speculation over potential U.S. involvement in the Israel-Iran conflict kept risk appetite subdued.
Investor sentiment was further dampened by hawkish signals from the Federal Reserve. The central bank left interest rates unchanged and offered no clear commitment to future rate cuts, trimming its outlook for easing in 2026.
As of 01:27 ET (05:27 GMT), Bitcoin slipped 0.3% to $105,124.1. The cryptocurrency has remained in a tight $103,000 to $108,000 range for the past week, with volatility constrained following renewed military tensions in the Middle East.
A Bloomberg report on Thursday suggested U.S. officials were preparing for a potential strike on Iran, although the likelihood of action remained uncertain. The report triggered a broader risk-off mood across markets, weighing on cryptocurrencies.
Statements from former President Donald Trump offered little clarity on the U.S. stance, while Tehran has repeatedly cautioned against American intervention.
Trump Pushes for Swift Passage of Stablecoin Legislation
On Wednesday, Trump applauded Senate approval of the GENIUS Act—a bill aimed at establishing a regulatory framework for stablecoins—and urged the House to pass it quickly.
“The House will hopefully move LIGHTNING FAST and pass a ‘clean’ GENIUS Act. Get it to my desk ASAP,” Trump posted on social media.
The bill’s progress gave a minor boost to crypto-related stocks, particularly Circle Internet Group Inc. (NYSE: CRCL), but had limited impact on broader market sentiment. Circle’s USDC and Tether’s USDT remain the dominant stablecoins facilitating crypto trading.
Altcoins Retreat as Fed Outlook Pressures Markets
Altcoins mirrored Bitcoin’s dip, pressured by the Fed’s cautious tone. The central bank kept rates at 4.25% to 4.5%, with Chair Jerome Powell reaffirming a data-driven approach to future policy decisions.
While Powell stuck to projections of two rate cuts in 2025, he reduced the outlook for 2026, reinforcing a hawkish stance. He also cautioned that Trump’s proposed tariffs could stoke inflation, further reducing the chances of monetary easing.
The risk-off sentiment spilled into the crypto market. Ethereum fell 0.5% to $2,525.37, while XRP held steady at $2.1691. Cardano and Solana both dropped over 2.5%.
Among meme tokens, Dogecoin slipped 0.3%, and $TRUMP declined 1.3%.
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