Bitcoin Holds Above $62,000 Amid Heightened US-Iran Geopolitical Risks

Bitcoin stabilized above $62,000 on Thursday after a sharp Wednesday decline, as escalating U.S.-Iran hostilities drained risk appetite and pressured speculative assets.

The world’s largest cryptocurrency traded 0.6% lower at $62,275.9 by 01:31 ET. It had rallied as high as $64,600 earlier this week, before renewed geopolitical tensions triggered a pullback.

The risk-off shift began after U.S. President Donald Trump announced the interim peace agreement with Iran was terminated.

Mutual military strikes between the U.S. and Iran raised market concerns over potential oil supply disruptions in the Strait of Hormuz. Brent crude advanced toward $79 per barrel, reviving inflation fears and delaying expectations for central bank rate cuts — a hostile backdrop for crypto assets.

Bitcoin has maintained a strong risk-asset correlation in recent months, leaving it highly sensitive to geopolitical sentiment swings.

The token briefly dipped below $62,000 following the policy update before attracting bargain-hunting support, though overall trading volume stayed subdued. Traders are also awaiting clearer guidance from the Federal Reserve, as latest FOMC minutes warned that Middle East-driven energy inflation could further complicate the monetary outlook.

Crypto-linked stocks also faced downward pressure, mirroring weakness in digital asset markets. Investors continue to track U.S. spot Bitcoin ETF flows, which remain the core institutional driver of Bitcoin’s 2026 trend.

Major altcoins traded muted and mixed amid cautious market sentiment.

Ethereum fell 0.7% to $1,741.92. XRP edged up 0.3% to $1.0938, while Solana dipped 0.6% and Cardano dropped 1%. Meme token Dogecoin traded broadly flat with minimal volatility.