The cryptocurrency market is experiencing a downturn once more today, with only two out of the top 100 digital currencies showing gains over the last 24 hours. In a troubling trend, the overall market capitalization for cryptocurrencies has fallen by 3.9% to $3.38 trillion. Trading volume remains consistent, sitting at $112 billion, similar to the previous day’s figures.
In summary:
The crypto market continues its descent amid significant geopolitical developments;
Bitcoin has dropped below the $105,000 mark, trading at $104,971;
Ethereum saw a decline from its daily high to an intraday low of $2,464 but has since begun to recover;
Canada has approved the first XRP exchange-traded fund (ETF) in North America;
“Stablecoins are increasingly becoming a cornerstone of the global financial system”;
US spot Bitcoin ETFs experienced inflows of $216.48 million, while spot Ethereum ETFs saw inflows of $11.09 million;
This downturn is likely influenced by the upcoming US Federal Reserve meeting and the nation’s involvement in the recent conflict with Iran.
Glimpse of Market Winners & Losers
All of the top 10 coins by market capitalization are facing losses today.
Bitcoin (BTC) has dropped by 1.6%, trading now at $104,971.
Ethereum (ETH) has similarly decreased by 2%, currently priced at $2,530.
XRP (XRP) recorded a notable decline of 3.6%, dropping to $2.15. Following closely is Solana (SOL), which fell by 3.5% to $147.
Tron (TRX) experienced the smallest drop at 1.1%, trading at $0.2742.
Only two assets among the top 100 have seen gains today. Kaia (KAIA) increased by 6.1% to $0.1644, and Nexo (NEXO) gained 0.6%, now priced at $1.23.
The sharpest decline today was recorded by Sky (SKY), which plummeted by 8.8% to $0.08404.
In a noteworthy development for XRP, Canada has approved the Purpose XRP ETF, the first of its kind in North America. Additionally, the Evolve XRP ETF is set to begin trading on June 18.
June 18th. TSX. Get ready.
Announcing the Purpose XRP ETF, offering regulated, direct exposure to spot #XRP, the native token powering fast, low-cost cross-border payments
Fund page: https://t.co/CfCEdbOUEp
Press release: https://t.co/8v1FPkXSdU… pic.twitter.com/uzNgZyRpC3
— Purpose Investments (@PurposeInvest) June 16, 2025
Stablecoins: A Cornerstone in Global Finance
The US Senate has approved the much-anticipated GENIUS Act, marking the first significant regulatory framework specifically aimed at stablecoins. The bill will now advance to the House of Representatives for a vote.
The U.S. Senate has passed the GENIUS Act — landmark stablecoin legislation that provides regulatory clarity, enhances consumer protection, and extends U.S. dollar dominance online. Thanks to President Trump for his leadership on crypto & @SenatorHagerty for authoring the bill.
— David Sacks (@davidsacks47) June 17, 2025
Liat Shetret, Vice President of Global Policy and Regulation at blockchain analytics firm Elliptic, remarked that the approval of this major stablecoin legislation is a crucial step in shaping the future of digital assets in the US. It represents a comprehensive approach to overseeing the rapidly expanding digital asset landscape.
Shetret emphasized that,
“Stablecoins are actively becoming a foundational component of the global financial system. By advancing the GENIUS legislation and similar initiatives, the Senate underscores its responsibility in providing financial stability and consumer protection.”
Lawmakers from both major political parties have spent months negotiating and refining the bill, addressing critical issues related to anti-money laundering, national security, and systemic risk, according to Shetret.
“It is evident that rigorous consumer protections and maintaining market integrity were pivotal in achieving this approval, and the GENIUS Act garnered strong bipartisan support,” he added.
Market Analysis: Crypto Down Today – Key Levels & Upcoming Events
As of this writing, Bitcoin is trading at $104,971, a drop from its earlier high of $106,795. The coin failed to sustain levels around $107,000 and $106,000, breaking support at $106,196. The next crucial support level to monitor is $104,633. The cryptocurrency remains distant from its all-time high of $111,814; however, a resurgence could bring it closer.
Furthermore, Bitcoin may experience short-term declines of 10% to 20% if the US escalates its involvement in the conflict with Iran, as noted by TradingView. Investors typically flock to safe havens during times of conflict.
Bitcoin Price Chart. Source: TradingView
Meanwhile, Ethereum is trading at $2,530, having recovered from its drop to an intraday low of $2,464 after previously reaching $2,584.
Current market sentiment in the crypto sector has reached its lowest point in recent days. The Fear and Greed Index dropped from 54 to 48, indicating a shift towards fear, although it remains in the neutral territory. A further decline could indicate potential buying opportunities.
Source: CoinMarketCap
On Tuesday, US Bitcoin spot ETFs observed net inflows amounting to $216.48 million for the seventh consecutive day. BlackRock accounted for $639.19 million of these inflows, although other funds recorded outflows, reducing the overall daily total.
Similarly, US Ethereum spot ETFs saw net inflows of $11.09 million, with Grayscale acquiring $36.71 million, and Bitwise $3.62 million. The cumulative net inflow stands at $3.89 billion.
Investors across all markets are currently channeling their focus toward two significant geopolitical and macroeconomic events.
On one front, they are reacting to the unfolding situation in Iran, particularly the US’s potential involvement, which is expected to impact various markets. On the other front, attention is also on the US Federal Reserve’s impending decision regarding interest rates.
Tomorrow at 2:30 p.m. ET: Chair Powell hosts live #FOMC press conference: https://t.co/fXt6ew8I9A pic.twitter.com/OPKhd6eRKt
— Federal Reserve (@federalreserve) June 17, 2025
Frequently Asked Questions
Why did crypto move with stocks today?
Both cryptocurrency and stock markets faced declines over the past day. The S&P 500 fell by 0.84%, Nasdaq-100 dipped by 1%, while the Dow Jones Industrial Average dropped by 0.7%. Although the stock market seemed to recover from the initial conflict in Iran, it is now grappling with the implications of increased US involvement.
Is this dip sustainable?
Considering the current unstable geopolitical and macroeconomic climate, this dip may persist in the near term. While another upward rally is possible, further drops remain feasible due to ongoing uncertainties.
The post Why Is Crypto Down Today? – June 18, 2025 appeared first on Finance Newso.
