Bitcoin remained in a tight consolidation range on Thursday, trading around $105,200, as rising geopolitical tensions between Israel and Iran coupled with a cautious stance from the U.S. Federal Reserve weighed on investor sentiment. The heightened conflict in the Middle East has rattled global markets, spilling into the digital asset space and weakening buying momentum across cryptocurrencies.
Market analysts from Bitfinex noted that Bitcoin is under pressure due to weak demand and emphasized that the $102,000–$104,000 support zone is crucial for avoiding a deeper correction. If this level holds, analysts project a potential rebound to $112,000 or even new all-time highs in the coming months. This follows a pattern seen in previous Bitcoin capitulation phases, which often preceded price recoveries.
Despite geopolitical uncertainty, institutional interest in Bitcoin remains strong. U.S. spot Bitcoin ETFs recorded eight consecutive days of inflows, totaling $388 million on Wednesday. Notably, Fidelity’s and BlackRock’s Bitcoin funds received the largest contributions. This ongoing accumulation signals enduring confidence among long-term investors, even as broader markets remain volatile.
The U.S. Federal Reserve’s decision to maintain interest rates at 4.25%–4.5% also impacted crypto markets. Though expected, the Fed’s hawkish tone and lack of dovish signals have dampened risk sentiment. Chair Jerome Powell noted the resilience of the U.S. economy and hinted that inflationary pressures, especially due to tariffs under President Trump, could rise in the coming months.
Meanwhile, new insights from Fidelity Digital Assets highlight that long-held Bitcoin (“ancient supply”) is growing faster than newly mined coins. However, some long-term holders have started moving assets, likely due to post-election uncertainty. Analysts warn that while supply scarcity theoretically supports higher prices, increased selling from older wallets may weigh on short-term performance. Overall, Bitcoin remains in a holding pattern, trapped between macroeconomic and geopolitical crosswinds.
Source: Nairametrics