Crypto Slides as Geopolitical Tensions Flare; Stablecoin Bill Sparks Institutional Hopes
Crypto markets saw broad declines Wednesday as geopolitical tensions escalated and investors stayed wary.
XRP fell 3.4% to $2.16, ADA dropped 4% to $0.5560, and ETH slipped 2.5% to around $2,500. Bitcoin hovered above $105,000, lacking clear direction despite global turmoil.
Heightened risk aversion followed President Donald Trump’s threats toward Iran’s supreme leader, fueling fears of deeper conflict in the Middle East.
“Bitcoin’s reaction has been muted, behaving neither like a pure risk asset nor a safe haven in recent sessions,” noted FxPro’s Alex Kuptsikevich.
Long-term bitcoin holders remain largely inactive, signaling potential consolidation before a possible Q3 rally.
Meanwhile, Washington advanced regulatory clarity as the U.S. Senate passed the GENIUS Act, laying groundwork for banks to issue stablecoins backed by high-quality assets.
“This legislation could accelerate enterprise adoption of stablecoin payments,” said Nick Ruck of LVRG Research, who sees it as the most significant regulatory step for stablecoins so far.
