paring earlier gains after briefly climbing near $76,000 as investors monitored oil price movements related to the Middle East conflict and anticipated key central bank decisions.

The world's largest cryptocurrency was last trading 0.2% higher at $74,291.5 by 9:07 AM (5:07 GMT).

Bitcoin has risen as high as $75,991.2 over the past 24 hours.

Bitcoin supported by short-covering and ETF inflows

Bitcoin was supported by short-covering as traders unwound bearish positions built during the sell-off in early February. However, momentum faded during the session, leaving Bitcoin near neutral levels.

Renewed institutional demand and steady inflows into Bitcoin spot ETFs also supported prices.

"Despite the recovery, Bitcoin's trajectory in March was not entirely smooth. Each upward attempt was met with selling pressure near previously established resistance zones as traders took profits after rapid gains," said Axel Rudolph, market analyst at IG, in a recent note.

"This led to a pattern of uptrends followed by consolidation phases as the market searches for a clearer directional trend," he added.

Worries about war with Iran and rising oil prices persist; Fed meeting approaches.

Geopolitical tensions remained in focus as the conflict involving the US, Israel, and Iran entered its third week, keeping risk sentiment fragile in global markets.

Oil prices fell on Monday evening but recovered on Tuesday, holding above $100 per barrel as concerns persisted about potential supply disruptions through the Strait of Hormuz.

Higher energy prices have heightened concerns about protracted inflation, impacting investor positioning across various asset classes, including cryptocurrencies.

"While escalating global tensions initially triggered a sell-off due to risk aversion, cryptocurrency later began to trade more as a safe haven asset as the situation unfolded," said IG's Rudolph.

Investors are now focused on the Federal Reserve's upcoming monetary policy decision, expected on Wednesday. The central bank is expected to keep interest rates unchanged, though markets are closely monitoring comments on inflation risks.

Besides the Fed, a series of global central bank meetings are scheduled this week.

Cryptocurrency Prices Today: Altcoins Mixed in Volatile Trading

The world's second-largest cryptocurrency, Ethereum, rose 1.5% to $2,314.73.

The world's third-largest cryptocurrency, XRP, rose 3% to $1.53.

Solana fell 0.3%, while Cardano and Polygon each fell 1%.

Among meme tokens, Dogecoin also fell 1%.