Bitcoin held above $62,000 on Thursday after falling in the previous session. Investors remained cautious as renewed U.S.-Iran tensions reduced appetite for risk assets.
The world’s largest cryptocurrency was last trading 0.6% lower at $62,275.9 by 01:31 ET.
Bitcoin had climbed as high as $64,600 earlier in the week. However, it later gave back those gains as geopolitical concerns returned to the market.
U.S.-Iran Tensions Weigh on Bitcoin
Bitcoin dropped more than 2% on Wednesday after U.S. President Donald Trump said an interim peace agreement with Iran was “over.”
The comments triggered wider weakness across equities and cryptocurrencies, as investors moved away from riskier assets.
The renewed conflict followed fresh U.S. strikes on Iranian targets and retaliatory attacks from Tehran. This raised concerns about possible disruption to oil flows through the Strait of Hormuz.
Oil Prices Add to Inflation Concerns
Brent crude moved toward $79 a barrel as Middle East tensions escalated.
Higher oil prices renewed concerns about inflation. They could also make major central banks more cautious about cutting interest rates.
This backdrop has weighed on speculative assets, including cryptocurrencies.
Bitcoin Tracks Broader Risk Sentiment
Bitcoin has increasingly moved in line with broader risk assets in recent months.
This has made the cryptocurrency more sensitive to changes in geopolitical sentiment. After Trump’s remarks, Bitcoin briefly slipped below $62,000 before finding support from bargain hunters.
However, trading volumes remained subdued, showing that investors are still cautious.
Federal Reserve Signals Remain in Focus
Crypto investors are also waiting for more signals from the Federal Reserve.
Minutes from the Fed’s latest policy meeting showed that officials remain concerned about inflation. Higher energy prices linked to the Middle East conflict could make the inflation outlook more complicated.
This may keep interest-rate expectations uncertain, which remains important for Bitcoin and other digital assets.
Crypto Stocks Follow Bitcoin Lower
Crypto-related stocks also came under pressure after Wednesday’s selloff.
The move reflected broader weakness in digital assets and cautious sentiment across risk markets.
Investors are also watching institutional demand through U.S.-listed spot Bitcoin exchange-traded funds. These ETFs have become a major driver of Bitcoin price action this year.
Altcoins Trade Mostly Flat
Most major altcoins were little changed on Thursday as investors stayed cautious.
Ethereum, the world’s second-largest cryptocurrency, fell 0.7% to $1,741.92.
XRP edged up 0.3% to $1.0938. Solana slipped 0.6%, while Cardano declined 1%.
Among meme tokens, Dogecoin traded mostly flat.
