BTC Slides on Middle East Conflict & Fed Caution

BTC Slides on Middle East Conflict & Fed Caution

Cryptocurrency markets traded lower on Wednesday, led by declines in major tokens such as Ethereum and XRP, as concerns over the escalating conflict in the Middle East prompted investors to move away from riskier assets.

Markets remain nervous about potential U.S. involvement in the ongoing Israel-Iran clash. Polymarket currently assigns a 65% probability of U.S. military action before July, highlighting investor anxiety and underscoring Bitcoin’s sensitivity to global geopolitical instability.

Bitcoin (BTC) was down 1.2% at $104,500, as investors adopted a cautious stance ahead of the Federal Reserve’s monetary policy decision and updated economic forecasts expected later in the day.

The market anticipates the Fed will maintain its policy unchanged for the fourth consecutive meeting today. Attention will focus on the Fed’s latest projections for economic growth, unemployment, and interest rates.

U.S. Senate Passes Stablecoin Legislation.

In a significant development, the U.S. Senate passed a stablecoin legislation, Genius Act, establishing regulatory frameworks for stablecoins pegged to the dollar. This marks a major victory for the growing crypto industry as the legislation will help stablecoins become a mainstream payment option.

ETF Growth Gains Momentum.

Turning to U.S.-based crypto ETFs, on June 17, Spot Bitcoin ETFs saw a net inflow of $216.5 million, while Spot Ether ETFs recorded a more modest net inflow of $11.1 million.

Global Positive Developments:

Thailand’s Ministry of Finance has announced a five-year tax exemption on income from cryptocurrency sales, including Bitcoin.

Fold Holdings, Inc. recently announced a new $250 million equity purchase facility to acquire more Bitcoin for its corporate treasury.

Swedish health tech company H100 Group AB has added 144.8 BTC to its reserves, bringing its total holdings to 169.2 BTC.

Singapore-based AI education firm Genius Group increased its Bitcoin treasury by 52%, acquiring an additional 34 BTC over the past month. The company now holds 100 BTC, purchased for over $10 million at an average price of approximately $100,600 per Bitcoin.

Nasdaq-listed Eyenovia plans to add $HYPE tokens to its treasury reserve. Despite these plans, HYPE is down over 5%, trading near $40.

The U.S. Securities and Exchange Commission (SEC) has opened public comments on Franklin Templeton’s XRP and SOL ETF proposals. XRP dropped over 3.5%, trading around $2.15.

VanEck’s proposed spot Solana ETF has been listed on the Depository Trust and Clearing Corporation (DTCC) website under the ticker “VSOL,” signaling a key step toward potential SEC approval. However, SOL has declined nearly 4%, trading near $147.38.

The Litecoin Foundation announced that its MiCAR-compliant white paper for Litecoin is now available on the official ESMA registry. Despite this, LTC is down 1.65%, trading around $85.

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