The tense situation in the Middle East has triggered risk aversion, with traders shifting from alts to stablecoins and Bitcoin.

According to Gate News bot and CoinDesk, U.S. officials are considering direct strikes against Iran, while The Federal Reserve (FED) indicated that the inflation outlook will persist, causing panic among investors and driving fluctuations in the stock market, mainstream crypto assets, and commodity markets.

The Federal Reserve Chairman Jerome Powell warned on Wednesday that tariffs and global conflicts could increase the difficulty of suppressing inflation. Although the Federal Reserve kept interest rates unchanged, Powell stated that the costs of tariffs "will be passed on to the end consumers," and the Federal Reserve needs to "observe more" before considering rate cuts.

Altcoins are considered high-risk investments and are usually the first to be sold off when the macro economy is under pressure.

Bitcoin continues to maintain range fluctuation. Despite being boosted by ETF inflows and a weak dollar, Bitcoin has risen 13% so far this year, but this week it has neither decisively acted as a safe-haven asset nor as a risk asset.

"Bitcoin seems to be caught between two areas," FxPro analyst Alex Kuptsikevich said, "It has not reacted to the increase in risk appetite, nor has it surged like gold during heightened conflicts."