Bitcoin prices declined for a fourth straight day on Wednesday, as the ongoing Israel-Iran conflict continued to weigh heavily on risk assets. The world’s largest cryptocurrency slid 1.8% to $105,376.90 by early U.S. trading hours. Over the weekend, Bitcoin briefly dipped near $103,000, its lowest level in nearly two months.
Investors grew increasingly cautious as the Middle East conflict entered its sixth day, stoking fears of a broader regional war. Recent U.S. military movements — including the deployment of additional fighter jets — and aggressive rhetoric from former President Donald Trump intensified concerns of American involvement.
Although digital assets are not directly exposed to war-related supply chains, their volatility and speculative nature often mirror broader investor sentiment.
Market headwinds for Bitcoin:
- Israel-Iran conflict shows no sign of cooling
- U.S. signals potential military intervention
- Weak U.S. economic data dents confidence
U.S. Senate Approves GENIUS Act for Stablecoin Oversight
In a landmark move for digital asset regulation, the U.S. Senate passed the GENIUS Act with bipartisan support in a 68-30 vote. The bill now heads to the House of Representatives, where Republican support could expedite its passage.
The legislation outlines a regulatory framework for stablecoins, including mandatory reserve requirements and public disclosure mandates for issuers.
While the GENIUS Act represents progress in crypto regulation, markets responded with muted enthusiasm. Investors appear focused on short-term geopolitical volatility rather than long-term regulatory clarity.
Key highlights of the GENIUS Act:
- Establishes federal oversight of stablecoin issuers
- Requires reserve transparency and public audits
- Aligns with Trump’s pro-crypto legislative agenda
Altcoins Follow Bitcoin’s Slide, Fed Decision Looms
Broader cryptocurrency markets mirrored Bitcoin’s decline, pressured by geopolitical tensions and investor caution ahead of a pivotal Federal Reserve meeting.
Traders largely expect the Fed to hold rates steady at 0.5%, but markets are on edge about Chairman Jerome Powell’s policy tone amid slowing U.S. economic growth.
Major altcoins dropped across the board:
- Ether (ETH): -1.5% to $2,541.20
- XRP: -2.8% to $2.1746
- Cardano (ADA): -2%
- Solana (SOL): -3%
Meme coins also retreated:
- Dogecoin (DOGE): -1.2%
- $TRUMP token: -1.7%
As global risk appetite remains fragile, investors are likely to stay cautious, especially with no clear resolution to geopolitical tensions on the horizon.