Bitcoin Holds Steady Amid Fed Rate Hike and Mideast Tensions

Bitcoin remained stable at around $76,491.7 on Thursday as markets absorbed the impact of the Federal Reserve's interest rate hike and escalating tensions in the Middle East.

The world's largest cryptocurrency showed a limited reaction to the Fed's decision to raise rates to 4.0%, which was in line with market expectations. However, higher rates typically bode poorly for cryptocurrencies as they increase the opportunity cost of investing in non-yielding assets.

Fed Chair Kevin Warsh struck a hawkish tone after the rate hike, warning that inflation remains too high. While this may signal more rate hikes to come, Bitcoin's price remained steady at 0.6% higher than the previous day's close.

The Middle East tensions eased slightly after the US held talks with Yemen's Iran-backed Houthis, who assured Washington that their 2025 ceasefire would remain in place and they would not attack US or Israeli ships. However, markets remain wary of any resurgence in crude prices due to ongoing US-Iran tensions.