Bitcoin Steadies Above $78k as Markets Eye Fed Meeting and Middle East Developments

Bitcoin's price has steadied above $78k as markets wait for more cues on US regulations and the Middle East conflict. The world's largest cryptocurrency rose 1.2% to $79,403.2 by 09:56 ET (13:56 GMT) after paring some gains from a recent peak of $82,000.

The 'debasement trade' has fueled the crypto rally, driven by the US Treasury's intervention in bond markets that sparked flows into alternative assets. However, higher interest rates could limit this trend, with focus now turning to the Fed's September meeting for more cues on monetary policy.

The Middle East conflict and US regulations remain a focus for markets. A Russian media report suggested a ceasefire deal was close, while Iran and Oman agreed on commercial shipping routes through the Strait of Hormuz, sending oil prices sharply lower. Weaker oil helped spur some optimism over softer inflation in the coming months.