Bitcoin fell on Thursday, dropping below $76,000 as escalating geopolitical tensions in the Middle East and inflation fears dampened risk appetite across global markets.

The world’s largest cryptocurrency was recently trading near $75,700, down about 1-2% over the past 24 hours.

Bitcoin fell to $75,337.40 on Thursday, after remaining near the $78,000 level in the previous session.

Renewed US-Iranian tensions and rising oil prices are putting pressure on the economy.

Morale dipped after a report from Axios stated that US President Donald Trump would be briefed on new military options against Iran, highlighting the risk of further escalation in the already volatile Middle East conflict.

The report confirmed that Washington is considering additional steps to break the current deadlock, with policymakers increasingly focusing on both the military and energy market implications.

Oil prices rose sharply in response. Brent crude jumped above $125 a barrel, hitting a four-year high, amid continued disruption to flows through the Strait of Hormuz, a critical global oil chokepoint.

A separate report from the Wall Street Journal stated that the United States is urging allies to make a coalition effort to reopen the Strait of Hormuz.

The Fed points to inflation risks in a divided decision

The macroeconomic landscape has been further complicated by the Federal Reserve’s latest decision, which saw policymakers keep interest rates unchanged but deliver the most divided vote in decades.

The decision revealed a division over the Fed's continued accommodative stance. Three regional Fed presidents objected to the wording, which implied future interest rate cuts, arguing it was inappropriate given that inflation remained above target and risks were tilted to the upside.

Federal Reserve Chairman Jerome Powell warned that inflation has not yet peaked and acknowledged growing domestic pressure to shift toward a more neutral stance. He also confirmed he will step down as chairman next month but will remain on the Board of Governors.

Cryptocurrency prices today: Altcoins are falling, Ethereum is down 3%

Most alternative currencies fell on Thursday, continuing losses amid a cautious mood.

The world's second-largest cryptocurrency, Ethereum, lost 3.2% to $2,250.65.

The world's third-largest cryptocurrency, XRP, fell 1.6% to $1.37.

Solana fell 2% and Cardano dropped 1%; Polygon rose 1%.

Among the meme symbols, Dogecoin rose 1.1%.