Bitcoin Dips 0.3% to $107,542 Amid Fed Inflation Concerns and Geopolitical Tensions

Bitcoin's price remained relatively stable, hovering around $107,000, as investors exercised caution amidst the Federal Reserve's stance on inflation and geopolitical tensions. The cryptocurrency experienced a slight dip of 0.3%, settling at $107,542.0 by 00:56 ET (04:56 GMT). Despite this minor decline, Bitcoin had seen an over 5% gain for the week, indicating a general upward trend. However, it struggled to break through the $103,000 resistance level, suggesting a period of consolidation.

The stability in Bitcoin's price can be attributed to several factors. The recent ceasefire in the Middle East has improved market sentiment, leading to a better risk appetite among investors. This positive sentiment has been reflected in the demand for spot ETFs, which remain popular among institutional investors. The improved risk sentiment has also contributed to Bitcoin's price stability, as investors are more willing to take on riskier assets.

However, the Federal Reserve's cautious stance on inflation has kept investors on edge. Fed Chair Jerome Powell's comments have indicated that the central bank is closely monitoring inflationary pressures, which could impact monetary policy decisions. This uncertainty has led to a degree of caution among investors, who are wary of potential rate hikes or other policy changes that could affect the broader market.

Despite these challenges, Bitcoin has shown surprising price stability amidst escalating geopolitical tensions. The cryptocurrency's ability to maintain its value in the face of such uncertainty is a testament to its growing acceptance as a store of value and a hedge against inflation. As the market continues to evolve, it will be interesting to see how Bitcoin's price responds to changing economic conditions and geopolitical developments.

Broader crypto prices moved in a flat-to-low range on Friday, but were sitting on some gains this week following the Israel-Iran ceasefire. Crypto markets also took some support from signs of increasing corporate adoption of crypto, following more Bitcoin purchases by Japan’s Metaplanet. U.S. mortgage giants were also seen considering allowing the use of crypto as an asset for mortgage applications, a move that could mark a major step forward for adoption of the asset class.

World no.2 crypto Ether was a standout performer this week, and was trading up 6.7%. But the crypto fell 1.3% to $2,443.22. XRP fell 3.8% to $2.1053, and was up 2.1% this week. Solana and Cardano shed more than 2% each, while among memecoins, Dogecoin lost 1.6% and $TRUMP traded flat.