Bitcoin Holds Steady Amid Hawkish Fed Outlook and Mideast Tensions

Bitcoin held steady at $76,491.7 on Thursday as markets digested the Federal Reserve's interest rate hike and tensions in the Middle East.

The Fed raised its benchmark rate to 4.0% on Wednesday, in line with market expectations, but its Chairman Kevin Warsh struck a hawkish chord by warning that inflation remains too high.

This usually bodes poorly for crypto, as higher rates increase the opportunity cost of investing in non-yielding assets.

Despite this, Bitcoin was among several cryptocurrencies to show some resilience amid broader gains in risk-driven markets.

Tensions in the Middle East eased slightly after Reuters reported that the U.S. had held talks with Yemen's Iran-backed Houthis, who assured Washington that their 2025 ceasefire remained and they would not attack U.S. or Israeli ships.