Crypto Market Dips as Tensions Rise and Stablecoin Bill Gains Traction

Crypto markets fell broadly on Wednesday, with altcoins leading the decline while Bitcoin remained range-bound above $105,000. XRP dropped 3.4% to $2.16, Cardano’s ADA fell 4% to $0.61485, and Ethereum slid 2.5% to $2,533.62. Solana's SOL declined 2.6% to $147.96, BNB inched down 0.5% to $651.24, and Hyperliquid’s HYPE plunged over 8%.

The risk-off sentiment was driven by escalating geopolitical tensions in the Middle East. Crude oil prices surged after U.S. President Donald Trump threatened to eliminate Iran’s supreme leader, escalating fears of broader conflict. This environment pressured digital assets across the board, though Bitcoin stayed relatively flat, hovering around $105,002.

“Bitcoin hasn’t acted as a classic risk-on or risk-off asset lately—even as global tensions flare,” noted FxPro’s chief market analyst Alex Kuptsikevich. On-chain metrics show long-term holders remain steady, suggesting the current consolidation could persist ahead of a potential breakout in Q3.

Amid market volatility, attention is turning to regulatory progress. The U.S. Senate passed the GENIUS Act, a bipartisan bill offering banks a legal framework to issue stablecoins backed by U.S. Treasury bills and other secure assets. The legislation is being hailed as the most comprehensive stablecoin bill to date and may fast-track enterprise adoption.

Nick Ruck of LVRG Research stated that the bill “could accelerate adoption by allowing American companies to implement stablecoin payment systems for instant transactions,” bridging traditional finance with decentralized finance (DeFi) infrastructure. The GENIUS Act may signal a pivotal shift toward institutional integration of crypto technologies and tokenized digital dollars in mainstream financial systems.