Bitcoin held steady near $77,000 on Wednesday as investors cautiously awaited the U.S. Federal Reserve's monetary policy decision, while assessing the impact of a potential long-term U.S. embargo on Iran.
The world's largest cryptocurrency was trading up 0.2% at $77,045.7 by 11:05 Saudi time.
IG analysts said in a note: The $78,000 to $79,500 area has emerged as a key technical barrier, with frequent profit-taking limiting further gains.
They added: This has led to a familiar pattern of sharp rises followed by a consolidation phase, highlighting a market that is improving but has not yet reached the full trend stage.
A Federal Reserve decision looms; Trump plans a long-term blockade on Iran.
Markets widely expect the Federal Reserve to leave interest rates unchanged on Wednesday, but are scrutinizing the guidance for clues about the path of monetary policy amid rising oil prices.
The meeting is also seen as likely to be the last one chaired by Jerome Powell, with former Federal Reserve Governor Kevin Warsh considered a leading candidate to succeed him.
Geopolitical developments have further clouded the outlook. A Wall Street Journal report stated that US President Donald Trump instructed his aides to prepare for a prolonged blockade of Iran, opting for sustained economic pressure rather than renewed military escalation or disengagement.
The report came after Washington rejected a three-step Iranian proposal earlier this week that would have reopened the Strait of Hormuz while postponing nuclear negotiations, with US officials deeming it insufficient.
Oil prices have risen above $110 a barrel amid the tensions, fueling fears of rising global inflation.
The market situation also appeared fragile, with reports of cryptocurrency sell-offs exceeding $290 million over the past day.
Analysts said Bitcoin remained range-bound, with resistance near the $80,000 level continuing to limit gains, while support around $76,000-$77,000 was seen as crucial in the near term.
Cryptocurrency prices today: Altcoins are stagnant amid a general risk-averse mood
Most alternative currencies traded in narrow ranges on Wednesday.
Ethereum, the world's second-largest cryptocurrency, rose 1.7% to $2,325.92.
XRP, the world's third-largest cryptocurrency, traded unchanged at $1.39.
Solana and Cardano each rose by 0.7%, while Polygon rose by 1%.
Among the meme currencies, Dogecoin rose by 2.7%.
