Bitcoin held above $62,000 on Thursday, after falling in the previous session, as investors assessed escalating tensions between the United States and Iran, which dampened appetite for high-risk assets.
The world's largest cryptocurrency, in its latest trading, recorded a 0.6% decrease to $62,275.90 by 8:31 AM.
Bitcoin had risen to $64,600.00 earlier in the week, before giving up those gains following renewed tensions between Washington and Tehran.
Escalating US-Iranian tensions are dampening risk appetite.
Bitcoin fell more than 2% on Wednesday after US President Donald Trump declared that the interim peace deal with Iran was over, triggering a broad sell-off in stocks and cryptocurrencies.
The renewed fighting followed fresh US strikes targeting Iranian sites and retaliatory attacks by Tehran, raising fears of further disruption to oil supplies through the Strait of Hormuz.
Brent crude rose to around $79.00 a barrel, reviving fears of rising inflation and the possibility that major central banks will maintain their cautious stance on interest rate cuts, which cast a shadow over high-risk assets, including cryptocurrencies.
Bitcoin has increasingly moved in tandem with high-risk assets in recent months, making it more vulnerable to shifts in geopolitical sentiment. The cryptocurrency briefly dipped below $62,000 following Trump's remarks before finding support as buyers returned, although trading volumes remained weak.
The cryptocurrency market is also awaiting further signals from the Federal Reserve, after the minutes of its latest monetary policy meeting highlighted concerns that rising energy prices resulting from the conflict in the Middle East could complicate the path of inflation.
Cryptocurrency-related stocks also came under pressure following Wednesday's sell-off in the markets, reflecting the poor performance of digital assets.
Investors are also monitoring institutional demand flows through US-listed Bitcoin spot exchange-traded funds (ETFs), which have become a major driver of price movements this year.
Cryptocurrency prices today: Relative stability for alternative currencies
Most alternative cryptocurrencies maintained their relative stability on Thursday, amid continued caution in the markets.
Ethereum, the world's second-largest cryptocurrency, fell 0.7% to $1,741.92.
In contrast, XRP, the third-largest cryptocurrency by market capitalization, rose 0.3% to $1.09.
Solana also declined by 0.6%, while Cardano fell by 1%.
As for the meme currency market, Dogecoin remained stable with little change.
