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Bitcoin Slips to $105K Amid Middle East Conflict and US Policy Moves

Bitcoin (BTC) prices slipped to around $105,000 on Wednesday as risk sentiment remained weak due to escalating geopolitical tensions in the Middle East. Investors are moving cautiously in response to ongoing conflict developments, driving a broader retreat from risk-sensitive assets like cryptocurrencies.

The decline reflects a classic risk-off shift as traders seek safety in fiat currencies and less volatile investments. Despite recent efforts by Bitcoin to consolidate above key support levels, renewed anxiety surrounding global instability has once again weighed on crypto momentum.

Meanwhile, trading volumes on major exchanges have remained muted, suggesting uncertainty among both institutional and retail investors. Bitcoin’s failure to break through recent resistance near $110K also adds to the current bearish tone in short-term technicals.

Regulatory Tailwinds Emerge as US Stablecoin Bill Advances

Amid the turbulence, crypto markets found a glimmer of optimism from Washington. The US stablecoin bill, which seeks to establish a comprehensive regulatory framework for dollar-backed digital tokens, made progress in Congress this week. The bill is seen as a critical step toward regulatory clarity, which many believe is necessary for broader institutional adoption.

If passed, the legislation could reduce uncertainty in the stablecoin market, enhance investor confidence, and provide clearer pathways for crypto firms to operate under federal oversight. Although it doesn’t directly impact Bitcoin, the move signals growing US interest in integrating digital assets into mainstream financial systems. Investing

Outlook: Bitcoin Faces Short-Term Pressure, Long-Term Hopes Remain

For now, Bitcoin remains vulnerable to external shocks, especially geopolitical ones. However, broader macro trends—including regulatory developments and growing institutional interest—continue to support the long-term bullish case.

As markets await further updates on the Middle East crisis and Federal Reserve policy guidance, Bitcoin is likely to remain range-bound, with key support levels near $100K and resistance around $110K to $115K.

Investors are advised to monitor news flows closely, particularly on geopolitical and legislative fronts, which could significantly influence near-term direction.

 

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