Bitcoin (COIN:BTCUSD) saw minimal price movement on Thursday, trading within a tight range as investor nerves persisted over the potential for U.S. involvement in the escalating Israel-Iran conflict.
The cautious market mood was further dampened by comments from the Federal Reserve, which opted to keep interest rates unchanged and signaled no immediate plans for cuts. The Fed also revised down its forecast for rate reductions in 2026, underscoring a more cautious, hawkish outlook.
By early Thursday morning (01:27 ET), Bitcoin slipped marginally by 0.3% to about $105,124, maintaining its week-long fluctuation between roughly $103,000 and $108,000—a range heavily influenced by the renewed geopolitical tensions in the Middle East.
According to a Bloomberg report, U.S. officials are actively preparing for a possible military strike on Iran soon, although no final decisions have been confirmed. This uncertainty sparked a risk-off sentiment across global markets, including declines in cryptocurrencies.
Meanwhile, former President Donald Trump’s remarks on the situation offered little clarity on U.S. military intentions. Iran, for its part, has consistently warned against direct American intervention.
Trump Supports Stablecoin Regulation, Calls for Swift Congressional Action
Trump voiced his backing for the Senate’s recent passage of the GENIUS Act, legislation aimed at regulating stablecoins. He urged the House of Representatives to pass the bill quickly and without amendments.
“The House should act LIGHTNING FAST and send me a clean GENIUS Act. Get it to my desk ASAP,” Trump tweeted.
While the bill’s progress gave a boost to some crypto stocks—particularly Circle Internet Group Inc (NYSE: CRCL)—it didn’t significantly raise overall market confidence. Circle’s USDC and Tether’s USDT remain the dominant stablecoins, crucial for many crypto transactions.
Altcoins Slide Amid Fed’s Hawkish Signals
Other cryptocurrencies followed Bitcoin’s subdued performance, pressured by the Fed’s guarded stance. The central bank maintained its benchmark rates at 4.25%–4.5%, with Chair Jerome Powell emphasizing that future policy decisions will depend closely on incoming economic data.
Powell reaffirmed expectations for two rate cuts in 2025 but lowered the projected reductions for 2026, a signal interpreted as relatively hawkish. He also noted that tariffs proposed by Trump could add inflationary pressure, further limiting the likelihood of rate cuts.
Following these remarks, risk assets broadly declined, pulling crypto prices down as well. Ethereum slipped 0.5% to $2,525.37, XRP remained near $2.17, and Cardano and Solana dropped over 2.5%. Meme coins like Dogecoin fell 0.3%, while the $TRUMP token declined 1.3%.