Bitcoin (BTC) price edges slightly higher, trading near $104,700 at the time of writing on Thursday, after stabilizing above a key level, the 50-day Exponential Moving Average (EMA) at $103,100. A breach below this level could trigger a sharp fall in BTC. The risk aversion could weigh in, as reports say US officials are preparing for a strike on Iran in the coming days. Despite this risk-off sentiment in global markets, institutional demand remained robust, with a positive inflow in US spot Bitcoin Exchange Traded Funds (ETFs) for the last eight consecutive days.
US prepares strike on Iran, says Bloomberg
The ongoing seven-day war between Iran and Israel took a major turn early on Thursday, as the news came in that the US officials are preparing for a strike on Iran in the coming days, according to Bloomberg.
The chart below shows that the Asian markets reacted negatively to this news. However, the largest cryptocurrency by market capitalization had a mild effect, as BTC holds around $104,700 during the early European session. 
However, BTC traders should still remain cautious, as volatility could increase if the US attacks Iran in the upcoming days, which could further weigh on sentiment, potentially causing a sharp decline in the BTC price.
US Fed holds interest rates amid tariffs and Israel-Iran conflict
The US Federal Reserve (Fed) kept the interest rate unchanged at the 4.25%–4.50% range at its June meeting on Wednesday, as widely expected. The Federal Open Market Committee (FOMC) still sees around 50 basis points of interest rate cuts through the end of 2025.
Fed Chair Jerome Powell warned that ongoing policy uncertainty will keep the Fed in a rate-hold stance, and any rate cuts will be contingent on labor and inflation data.
The markets remained neutral, as an unchanged interest rate was highly expected.
On Thursday, US President Donald Trump posted on his Truth Social account, “Too Late—Powell is the WORST. A real dummy, who’s costing America $Billions!” 