XRP and ADA spearhead declines among top cryptocurrencies as Bitcoin bulls set their sights on a Q3 rebound to previous highs.

Altcoins Lead Market Retreat Amid Middle East Crisis and Regulatory Shifts

Cryptocurrency markets slipped on Wednesday, dragged lower by broad risk-off sentiment as geopolitical tensions escalated and investors weighed evolving regulatory developments in the U.S.

XRP shed 3.4% to trade at $2.16, Cardano’s ADA dropped 4% to $0.5560, and ether lost 2.5%, hovering just above $2,500. BNB dipped slightly, while Solana’s SOL fell 2.6%, and Hyperliquid’s HYPE plunged over 8%.

Global markets are on edge amid rising oil prices and intensifying conflict between Israel and Iran. Comments from President Donald Trump threatening Iran’s supreme leader fueled further anxiety and added to selling pressure across risk assets.

Despite the turmoil, bitcoin traded sideways around $105,000, reflecting a market still undecided about its role as either a safe haven or risk asset.

“Bitcoin has become less predictable as a risk indicator, even during significant geopolitical stress,” said Alex Kuptsikevich, chief market analyst at FxPro, highlighting the crypto’s subdued response despite broader volatility.

On-chain indicators show long-term BTC holders remain mostly stationary, suggesting consolidation rather than panic selling. Analysts believe this could set up conditions for a breakout later in Q3.

Amid market volatility, regulatory progress offers a potential bright spot. The GENIUS Act, passed by the U.S. Senate on Tuesday, establishes guidelines for banks issuing stablecoins backed by Treasury securities and other liquid assets.

“The GENIUS Act could be transformative, opening the door for stablecoins to integrate into traditional business operations,” said Nick Ruck, director at LVRG Research. “It’s the clearest signal yet that regulated, institutional-scale stablecoin adoption is on the horizon.”