The Federal Reserve’s choice to maintain benchmark interest rates at 4.25%-4.50% has reinforced Bitcoin’s position near the $104,000-$105,000 range, demonstrating its growing status as a hedge against market volatility amid heightened Middle East tensions.
Investors increasingly adopted a risk-off approach during recent geopolitical unrest, favoring Bitcoin and stablecoins as non-correlated assets to diversify portfolios against traditional market fluctuations. This institutional pivot highlights Bitcoin’s appeal as a strategic safe harbor during periods of economic and political uncertainty.
Bitcoin’s resilience throughout these events signals its maturation beyond speculative investment into a viable asset class during market stress. Financial institutions and traders continue monitoring Federal Reserve policies and international developments to adjust portfolio allocations accordingly.