Bitcoin edged back above $63,000 on Friday, stabilizing near recent lows as investors assessed the implications of a hawkish US Federal Reserve stance and renewed geopolitical uncertainty surrounding Iran and the Strait of Hormuz.

The world’s largest cryptocurrency traded within a narrow range following a decline to its lowest level in more than a week, reflecting cautious sentiment across risk assets after the Federal Reserve’s latest policy meeting.

The Federal Open Market Committee (FOMC), led by new Federal Reserve Chair Kevin Warsh, kept interest rates unchanged but signaled a firm commitment to controlling inflation. In post-meeting remarks, Warsh emphasized that inflation remains above the Fed’s 2% target and reiterated the central bank’s focus on maintaining price stability.

Market participants had expected a more accommodative tone given calls from Donald Trump for lower interest rates. However, Warsh’s comments suggested policymakers remain cautious about easing monetary policy too soon.

According to market pricing, expectations for a rate hike at the Fed’s July meeting have risen to nearly 40%, adding pressure on risk-sensitive assets such as cryptocurrencies.

Meanwhile, geopolitical developments in the Middle East continued to influence investor sentiment. Attention remains focused on tensions between the United States and Iran, particularly regarding the strategically important Strait of Hormuz, a key route for global oil shipments.

Reports indicate Iran is seeking greater control over transit through the waterway despite a recently signed memorandum of understanding with the United States. The uncertainty has kept energy markets on edge, with crude oil prices hovering around $75 per barrel.

Despite the challenging backdrop, Bitcoin managed to hold above the $63,000 mark, although analysts noted a lack of strong bullish momentum. Some market observers have warned that the current bear market could still face unexpected shocks later in the year.

Crypto analyst Rekt Capital suggested that historical Bitcoin bear markets have often experienced a significant “black swan” event during their later stages, cautioning traders against complacency.

While Bitcoin has shown resilience amid macroeconomic and geopolitical uncertainty, investors remain focused on upcoming Federal Reserve decisions and global developments that could shape market direction in the weeks ahead.