XRP, ADA tumble with crypto majors, but Bitcoin bulls eye a Q3 comeback.

Altcoins Slide as Geopolitical Tensions Rise and Stablecoin Legislation Gains Momentum

Crypto markets turned lower on Wednesday, led by pronounced weakness in altcoins, while Bitcoin continued to hover near $105,000 in tight trading.

XRP declined 3.4% to $2.16, Cardano’s ADA dropped 4% to $0.5560, and Ether fell 2.5% to above $2,500. Meanwhile, BNB Chain’s BNB slipped 0.5%, Solana’s SOL lost 2.6%, and Hyperliquid’s HYPE tumbled over 8%.

Traders grew cautious amid surging oil prices and intensifying conflict between Israel and Iran. Sentiment was further rattled after U.S. President Donald Trump threatened Iran’s supreme leader, calling him an “easy target,” escalating fears of wider conflict in the Middle East.

Bitcoin, historically a barometer for risk sentiment, has been trading sideways despite global uncertainty and a softer U.S. dollar.

“Bitcoin isn’t reacting as a typical risk asset right now—even with geopolitical strains dominating headlines,” said Alex Kuptsikevich, chief market analyst at FxPro.

On-chain data shows long-term bitcoin holders remain largely unmoved, suggesting little widespread profit-taking even as prices consolidate. “This kind of positioning could support the current sideways action and potentially set the stage for a breakout in the third quarter,” Kuptsikevich added.

Beyond geopolitical risks, investors are monitoring signs of a longer-term shift toward institutional adoption and regulated stablecoin frameworks.

On Tuesday, the U.S. Senate approved the GENIUS Act with bipartisan support, setting regulatory standards for banks issuing stablecoins backed by U.S. Treasuries and other highly liquid assets. The legislation is seen as a crucial step in normalizing stablecoin usage across the broader economy.

“This bill could dramatically speed up adoption, letting American firms use stablecoins for real-time payments and operational efficiencies that are commonplace in decentralized finance,” said Nick Ruck, director at LVRG Research, in a Telegram message.

Some banks have hailed the GENIUS Act as the most robust regulatory blueprint for stablecoins so far, potentially ushering tokenized dollars from crypto exchanges into traditional corporate finance systems.