Bitcoin (COIN:BTCUSD) showed little movement on Thursday, trading within a narrow range as ongoing concerns about potential U.S. involvement in the Israel-Iran conflict kept investors cautious.

Market sentiment was further subdued by cautious remarks from the Federal Reserve, which opted to maintain interest rates without signaling any imminent rate cuts. The Fed also lowered its expectations for rate reductions in 2026, reinforcing a more hawkish stance.

By 01:27 ET, Bitcoin had dipped slightly by 0.3% to $105,124.1, continuing to fluctuate within a band of roughly $103,000 to $108,000 over the past week—largely shaped by renewed tensions in the Middle East.

A Bloomberg report on Thursday revealed that U.S. officials are preparing for the possibility of military action against Iran in the near future, though no final decision has been made. This news triggered risk-off moves across global markets, including losses in cryptocurrency.

Former President Donald Trump’s comments on the situation offered little clarity about potential U.S. military involvement. Meanwhile, Iran has consistently warned against direct U.S. engagement.

Trump Praises Stablecoin Legislation, Urges Swift Passage

Trump expressed support for the recent Senate approval of the GENIUS Act, legislation designed to regulate stablecoins. He urged the House of Representatives to approve the bill quickly and without amendments.

“The House will hopefully move LIGHTNING FAST, and pass a ‘clean’ GENIUS Act. Get it to my desk, ASAP,” Trump wrote on social media.

Although the bill’s progress boosted some crypto stocks, notably Circle Internet Group Inc (NYSE:CRCL), it did not significantly lift overall market confidence. Circle’s USDC and Tether’s USDT remain the leading stablecoins, vital for many crypto transactions.

Altcoins Drift Lower Amid Fed Caution

Other cryptocurrencies followed Bitcoin’s downward drift, pressured by the Fed’s cautious outlook. The central bank held rates steady at 4.25%–4.5%, with Chair Jerome Powell emphasizing a data-driven approach to any future monetary easing.

Powell reaffirmed the possibility of two rate cuts in 2025 but trimmed the expected reductions in 2026—a move seen as relatively hawkish. He also cautioned that Trump’s proposed tariffs could increase inflation pressures, reducing the likelihood of rate cuts.

Risk assets broadly retreated after these comments, dragging crypto prices down as well.

Ethereum, the world’s second-largest cryptocurrency, fell 0.5% to $2,525.37, while XRP held steady near $2.17. Cardano and Solana both declined by over 2.5%. Meme coins like Dogecoin slipped 0.3%, and $TRUMP token lost 1.3%.

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