Investing.com– Bitcoin moved little on Thursday, remaining squarely in a tight trading range as increased speculation over U.S. involvement in the Israel-Iran war kept traders largely risk-averse.
Hawkish comments from the Federal Reserve also weighed on risk sentiment, after the central bank kept interest rates steady and remained non-committal to further easing. The Fed also trimmed its rate cut outlook for 2026.
Bitcoin fell 0.3% to $105,124.1 by 01:27 ET (05:27 GMT). The world’s largest crypto has stuck to a trading range of between $103,000 to $108,000 for the past week, especially after the onset of renewed military action between Israel and Iran.
A Bloomberg report said on Thursday that U.S. officials were preparing for a potential strike against Iran in the coming days, although it was unclear whether it would materialize. Still, the report sparked a stronger risk-off move across financial markets, with crypto also logging losses.
Comments from U.S. President Donald Trump also provided little clarity on whether the U.S. will become directly embroiled in the conflict. Tehran has repeatedly warned against U.S. involvement.
Trump lauds stablecoin bill progress, calls for ‘clean,’ immediate passage
Trump on Wednesday evening lauded the passage of the GENIUS Act- a bill that establishes a regulatory framework for stablecoins- through the Senate, and called for its immediate passage through the House.
“The House will hopefully move LIGHTNING FAST, and pass a “clean” GENIUS Act. Get it to my desk, ASAP,” Trump said in a social media post.
While the bill’s progress did spur some gains in crypto stocks, especially Circle Internet Group Inc (NYSE:CRCL), it inspired little overall confidence in crypto markets, even as it showed Trump making good on his promises to approve more crypto-friendly regulation.
Circle’s USDC and Tether’s USDT are the biggest stablecoins in the market, and play a key role in facilitating crypto transactions.
Crypto price today: altcoins drift lower, Fed rate outlook weighs
Broader crypto prices drifted lower in tandem with Bitcoin, with hawkish-leaning comments from the Fed also lending pressure.
The central bank left interest rates unchanged at 4.25% to 4.5%, with Chair Jerome Powell reiterating a data-driven approach to any future cuts.
Powell maintained his forecast of two more cuts in 2025, but trimmed the outlook for rate cuts in 2026, a move that was perceived to be largely hawkish.
Powell also warned that Trump’s tariff plans could drive up inflation in the coming months, giving the central bank even less impetus to cut rates.
Broader risk-driven assets retreated after Powell’s comments, with losses spilling over into crypto.
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