Crypto Markets Dip as Traders Eye Stablecoin Policy Shifts and Bitcoin’s Resilient Holders

Cryptocurrency markets broadly declined on Wednesday, led by losses in altcoins while Bitcoin hovered in a narrow range just above $105,000.

XRP dropped 3.4% to $2.16, Cardano’s ADA slipped 4% to $0.5560, and Ether fell 2.5% to slightly above $2,500. BNB Chain’s BNB edged down 0.5% to $645.90, Solana’s SOL lost 2.6%, and Hyperliquid’s HYPE plunged more than 8%.

The cautious mood reflected heightened risk aversion as oil prices rose amid continued military clashes between Israel and Iran. Market nerves intensified after U.S. President Donald Trump threatened to eliminate Iran’s supreme leader, describing him as an “easy target.”

Bitcoin, however, showed little directional momentum despite global turmoil and a weakening dollar.

“Bitcoin hasn’t behaved strictly as either a risk-on or risk-off asset recently, even in the face of geopolitical tensions,” noted Alex Kuptsikevich, chief market analyst at FxPro.

On-chain data indicates that long-term Bitcoin holders remain largely inactive, signaling limited profit-taking despite recent gains. “That positioning could support ongoing consolidation before a possible breakout in Q3,” Kuptsikevich said.

Amid the day’s volatility, traders are also weighing what may be a pivotal shift toward greater institutional participation and regulated stablecoin adoption.

On Tuesday, the U.S. Senate passed the GENIUS Act—a bipartisan bill establishing regulatory standards for banks issuing stablecoins backed by Treasury securities and other high-quality liquid assets. Many view the legislation as a crucial step that could drive enterprise adoption and integrate stablecoin payments into traditional industries.

“The bill could accelerate mainstream use of stablecoins by giving American companies across sectors the confidence to deploy instant payment systems and other tools already thriving in DeFi,” said Nick Ruck, director at LVRG Research, in a Telegram message.

Banks have hailed the GENIUS Act as the most comprehensive legislation to date for stablecoins, potentially paving the way for tokenized dollars to migrate from crypto trading venues into the heart of corporate financial infrastructure.