Bitcoin Holds Below $77,000 as Risk Sentiment Weakens
Bitcoin traded cautiously on Thursday, remaining below the $77,000 level as rising geopolitical tensions in the Middle East and persistent inflation concerns weighed on global risk appetite.
The leading cryptocurrency was last seen near $76,500, marking a 0.4% decline over the past 24 hours.
Intraday Volatility Pressures Bitcoin
During the session, Bitcoin dropped to a low of $74,958, after trading close to the $78,000 range in the previous session, highlighting increased short-term volatility.
US-Iran Tensions and Oil Surge Impact Markets
Market sentiment deteriorated following reports that Donald Trump is set to receive a briefing on potential new military strategies against Iran, signaling a possible escalation in an already fragile geopolitical environment.
The situation has raised concerns about broader economic and energy market implications, with policymakers exploring options to address the ongoing stalemate.
Oil Prices Spike Amid Supply Concerns
In response, oil markets reacted sharply. Brent crude surged above $125 per barrel, reaching a four-year high due to disruptions in the Strait of Hormuz, a critical global energy route. Prices later eased to around $114 per barrel.
Meanwhile, a report from The Wall Street Journal indicated that the U.S. is encouraging allies to form a coalition aimed at reopening the key shipping route.
Federal Reserve Signals Ongoing Inflation Risks
The macroeconomic outlook was further complicated by the latest decision from the Federal Reserve, which opted to keep interest rates unchanged but revealed one of the most divided policy votes in decades.
Policymakers Split on Rate Outlook
The decision exposed internal disagreements over the Fed’s continued “easing bias.” Three regional presidents opposed language suggesting future rate cuts, arguing that inflation remains above target and risks are still skewed to the upside.
Fed Chair Jerome Powell noted that inflation has not yet peaked and acknowledged increasing pressure within the central bank to adopt a more neutral stance. He also confirmed plans to step down as chair next month while remaining on the Board of Governors.
Crypto Market Overview: Altcoins Under Pressure
The broader crypto market showed weakness, with most altcoins extending losses amid cautious sentiment.
- Ethereum fell 1.6% to $2,267.65
- XRP slipped 0.4% to $1.37
- Solana and Cardano both declined by less than 1%
On the upside, Polygon gained nearly 4%, while meme token Dogecoin rose 0.5%.
