Bitcoin (BTC-USD) held firm above the $105,000 (£78,315) mark on Thursday, defying a broader risk-off sentiment in global markets as geopolitical tensions flared and the US Federal Reserve struck a hawkish tone on monetary policy.
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Bitcoin’s resilience comes as US president Donald Trump weighs whether to join Israel’s attack on Iran. Despite heightened market volatility, with the Nasdaq Composite (^IXIC) closing lower on Wednesday and stock futures pointing to further declines on Thursday morning, bitcoin held firm, trading within a tight range of $103,000 to $108,000 over the past week.
According to a Bloomberg report citing sources close to the matter, Trump told aides late Tuesday that he supports US military action against Iranian nuclear sites but has not issued a final order. The deliberations come amid ongoing military hostilities between Israel and Iran, with the Fordow enrichment facility, buried deep beneath a mountain, identified as a potential target.
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“I may do it, I may not do it,” Trump said in an exchange with reporters at the White House. “I mean, nobody knows what I’m going to do.”
The geopolitical uncertainty has contributed to a cautious tone across markets, prompting investors to seek refuge in alternative assets. Gold (GC=F) edged higher on Thursday.
Bitcoin’s relative stability contrasted with a pullback across the broader crypto market following the Federal Reserve’s latest policy announcement. On Wednesday, the central bank held interest rates steady at 4.25% to 4.5%, with Fed chair Jerome Powell reiterating a data-dependent stance and trimming the outlook for rate cuts in 2026.
While Powell maintained the projection of two rate cuts in 2025, the Fed’s more cautious long-term posture added to concerns that borrowing costs could remain elevated for longer, a headwind for risk assets, including equities and cryptocurrencies.
Adding to investor anxiety, Powell also warned that Trump’s proposed tariff policies could fuel inflation, limiting the central bank’s flexibility to ease rates.
In a move welcomed by the crypto industry, Trump on Wednesday celebrated the US Senate’s passage of the GENIUS Act, a bill aimed at establishing a clear regulatory framework for stablecoins. He called on the House of Representatives to move “LIGHTNING FAST” and deliver a clean version of the bill to his desk.
