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Bitcoin Price Drops Amid US-Iran Tensions & Fed Uncertainty

by Michael Brown - Business Editor
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Note: Possible currency fluctuations may affect returns.

Note: Past performance or simulations are not a reliable indicator of future performance.

Bitcoin Temporarily Falls Toward $66,000 as U.S.-Iran Conflict Looms

Bitcoin (USD) edged back toward the $66,000 mark on Friday, February 20, 2026, as escalating tensions between the United States and Iran dampened investor risk appetite. The geopolitical uncertainty is weighing on markets, limiting enthusiasm for speculative investments while the situation remains volatile. The cryptocurrency’s movement reflects a broader trend of investors seeking safety amid global instability.

Adding to the cautious market sentiment is ongoing uncertainty surrounding the monetary policy path of the U.S. Federal Reserve. Markets are currently fluctuating between hopes for easing and fears of persistently high interest rates. This environment lacks the momentum needed for a sustained upward trend.

Fears of Escalation in U.S.-Iran Tensions

Concerns over a potential escalation of tensions between Iran and the U.S. Are expected to remain a central focus for market participants. Recent reports indicate that former President Trump issued a deadline to Iran for reaching an agreement, suggesting a timeframe of 10 to 15 days. In response, Tehran reportedly issued threats against the U.S.

Fed Minutes Signal Disagreement on Interest Rate Policy

Minutes from the Federal Reserve’s recent meeting, released late Wednesday, February 19, 2026, revealed apparent disagreement over the future course of interest rates. Ten participants on the January 27-28 session favored a pause in interest rate hikes, while Fed Governors Christopher Waller and Stephen Miran advocated for a quarter-percentage-point rate cut.

According to the CME Group’s “FedWatch Tool,” currently six percent of market participants anticipate a 25 basis point reduction in the Fed funds rate at the March 18 meeting, while 94 percent expect a pause.

Investors were likewise focused on the core rate for personal consumption expenditures, which rose by a stronger-than-expected 0.4 percent in January compared to the previous month.

The U.S. GDP growth rate fell to 1.4 percent year-over-year in the latest quarter, falling short of expectations of 3.0 percent.

 

 

 

 

 

 

 

 

 

 

 

 

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