Bitcoin continues to hold near $71,000 despite escalating geopolitical tensions in the Middle East, with the cryptocurrency still posting solid weekly gains as investors turn their attention to the upcoming Federal Reserve meeting scheduled for March 17–18.

The largest digital asset was trading around $71,000 early Saturday, down roughly 0.7% over the past 24 hours after the U.S. carried out strikes on military targets at Kharg Island. The island serves as a key facility for Iran’s crude shipments, making the development a notable escalation in the ongoing conflict.

Bitcoin had earlier climbed to $73,838 on Friday before retreating following the news. The approximately 3.5% decline was sharp but limited, indicating that markets may be growing more accustomed to geopolitical shocks that previously could have triggered deeper losses.

Despite the pullback, the broader crypto market remains in positive territory for the week. Bitcoin has gained around 4.2% over the past seven days. Ether has advanced about 5.5% to $2,090, while Dogecoin has added roughly 5%. Solana has risen 4.2% to $88 and BNB has climbed about 4.5% to $655.

The gains suggest traders are gradually adjusting to the geopolitical backdrop. Early in the conflict, each new headline triggered outsized market reactions as participants struggled to assess the potential risks. More recently, however, a clearer pattern has emerged: military escalations push oil prices higher, bitcoin dips briefly, and the market stabilizes.

Even so, the $73,000–$74,000 range remains a strong resistance zone. Bitcoin has tested that level four times in the past two weeks without successfully breaking through.

Additional uncertainty entered the market following comments from Donald Trump late Friday. Posting on Truth Social, Trump said oil infrastructure had been spared “for reasons of decency,” but warned the U.S. could reconsider if Iran continued disrupting traffic through the Strait of Hormuz.

Iran responded by warning that any attacks on its energy infrastructure would prompt retaliatory strikes against facilities linked to the United States in the region. Such a move could worsen the supply shock that the International Energy Agency has already described as the largest in history.

Crypto derivatives markets reflected the volatile trading session. Roughly $371 million in positions were liquidated over the past 24 hours. Short liquidations totaled about $207 million, exceeding the $163 million in long liquidations. This indicates bearish traders were squeezed during the rally toward $73,800 before the Kharg-related decline forced newly opened long positions to unwind.

Investor attention now turns to the Federal Reserve’s upcoming policy meeting.

With crude oil trading above $100, a major global energy supply disruption underway, and the conflict entering its third week with no clear resolution, concerns about stagflation are becoming harder for markets to ignore.

According to the CME Group’s FedWatch tool, traders still assign a greater than 95% probability that the Fed will leave interest rates unchanged in the 3.5%–3.75% range.

However, markets will likely focus more closely on updated projections and comments from Fed Chair Jerome Powell. Any indication that policymakers may consider additional rate hikes could pressure risk assets, including cryptocurrencies, which have spent months anticipating rate cuts that have yet to materialize.