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Bitcoin rose marginally on Thursday, staying within its tight trading range as growing speculation over U.S. involvement in the Israel-Iran conflict kept investors cautious. The world’s largest cryptocurrency climbed 0.1% to $104,900.0 at 05:20 ET (09:20 GMT), with prices hovering between $103,000 and $108,000 over the past week, largely driven by ongoing geopolitical risks.
U.S. Involvement in Israel-Iran Conflict Raises Market Uncertainty
Speculation over potential U.S. intervention in the Israel-Iran conflict is adding to market uncertainty. A Bloomberg report on Thursday indicated that U.S. officials are preparing for a potential strike on Iran, although the details and timing of such an action remain unclear. The ongoing geopolitical tensions are keeping investors on edge, with traders opting for a more risk-averse approach, contributing to Bitcoin’s lack of significant movement.
Federal Reserve’s Hawkish Stance Weighs on Risk Sentiment
Hawkish comments from the Federal Reserve also played a role in weighing on risk sentiment. The central bank kept interest rates steady at 4.25% to 4.5% and maintained its cautious stance on future rate cuts. Chair Jerome Powell reiterated that any further easing would be based on incoming data. Additionally, the Fed trimmed its rate cut outlook for 2026, which was seen as hawkish and added pressure on risk-driven assets like Bitcoin.
Powell also highlighted concerns about inflationary pressures stemming from President Trump’s trade tariffs, which further diminished the likelihood of rate cuts in the near term. As a result, broader risk assets, including cryptocurrencies, retreated following Powell’s comments.
Stablecoin Bill Progresses, Providing Some Relief for Crypto Stocks
On a more positive note for the crypto market, U.S. President Trump praised the Senate’s passage of the GENIUS Act, a bill aimed at establishing a regulatory framework for stablecoins. In a social media post, Trump urged the House to move quickly and pass the bill. This progress fueled optimism in the crypto sector, with crypto-related stocks, particularly Circle Internet, seeing some gains.
The GENIUS Act could potentially provide more regulatory clarity for stablecoins like Circle’s USDC and Tether’s USDT, which play a significant role in facilitating crypto transactions.
Broader Crypto Market Experiences Slight Decline
Broader cryptocurrency markets also faced downward pressure, largely driven by the hawkish Fed stance and broader risk aversion:
- Ether (ETH), the world’s second-largest cryptocurrency, fell 0.1% to $2,526.50.
- XRP remained steady at $2.1577.
- Cardano (ADA) and Solana (SOL) both saw losses of over 1%.
Conclusion
Bitcoin remains in a narrow trading range as geopolitical tensions, particularly regarding the Israel-Iran conflict, weigh on market sentiment. The hawkish tone from the Federal Reserve further contributed to a risk-averse environment, putting downward pressure on cryptocurrencies. However, the passage of the GENIUS Act in the Senate provided some relief for the crypto sector, boosting optimism for more favorable regulatory developments. As the situation unfolds, crypto markets will continue to watch developments in both geopolitics and U.S. monetary policy for further direction.
