Image Credit: Reuters

Bitcoin Holds Near $105K as Market Faces Geopolitical and Fed Pressure

Bitcoin remained under pressure on Thursday, trading around the $105,000 mark as investors weighed rising geopolitical risks and fresh concerns about U.S. monetary policy. The world’s largest cryptocurrency is struggling to regain momentum amid broader market uncertainty triggered by the ongoing Israel–Iran tensions and signals of a hawkish Federal Reserve.

While Bitcoin has shown resilience compared to other risk assets, recent price action reflects a cautious investor mood. The digital asset briefly touched $106,000 earlier in the week before retreating, as traders responded to macro headlines and repositioned portfolios ahead of key developments.

Mideast Tensions and Safe-Haven Doubts

The escalating conflict between Israel and Iran has added a layer of volatility to global markets, prompting a shift into traditional safe-haven assets such as gold and U.S. Treasuries. Bitcoin, often promoted as “digital gold,” has yet to demonstrate consistent behavior as a crisis hedge during real-time geopolitical stress.

Investor flows show a more defensive stance, with reduced leverage and increased demand for cash equivalents. While large holders, or “whales,” continue to accumulate Bitcoin, retail interest appears to be cooling in the face of growing global instability.

Analysts suggest that until there is greater clarity on the Middle East situation, risk appetite across the crypto market will remain subdued. Investing

Fed Policy Adds to Market Jitters

Adding to the uncertainty is the Federal Reserve’s latest messaging on inflation and interest rates. While the Fed opted to keep rates unchanged at its recent meeting, Chair Jerome Powell’s comments hinted at the possibility of prolonged policy tightening should inflationary pressures persist.

This has created headwinds for Bitcoin and other crypto assets, which tend to benefit from a more dovish rate environment. A strong U.S. dollar and elevated yields have made it more difficult for Bitcoin to break out of its current trading range. Crypto News

The combination of geopolitical risks and monetary tightening has caused many traders to adopt a wait-and-see approach, resulting in lower volumes and a lack of momentum despite fundamentally bullish long-term sentiment.

Technical Picture: Range-Bound With Cautious Outlook

From a technical standpoint, Bitcoin is currently consolidating between $104,000 and $106,000. The narrow range reflects indecision, with neither bulls nor bears showing clear dominance. Momentum indicators suggest a lack of conviction, while trading volumes have steadily declined over the past week. CNN

Key support is seen around $102,000, while resistance remains firm at $107,500. A breakout above or below this range could determine Bitcoin’s next directional move.

Until then, investors are likely to remain cautious, closely tracking global developments and central bank policy cues before making aggressive bets in the crypto space.

 

To learn more news , be sure to check out here:  Dupoin

 

 

Disclaimer

Derivative investments involve significant risks that may result in the loss of your invested capital. You are advised to carefully read and study the legality of the company, products, and trading rules before deciding to invest your money. Be responsible and accountable in your trading.

RISK WARNING IN TRADING

Transactions via margin involve leverage mechanisms, have high risks, and may not be suitable for all investors. THERE IS NO GUARANTEE OF PROFIT on your investment, so be cautious of those who promise profits in trading. It's recommended not to use funds if you're not ready to incur losses. Before deciding to trade, make sure you understand the risks involved and also consider your experience.