The price of Bitcoin fell on Wednesday, continuing its recent losses as the war between Israel and Iran persisted, weakening risk appetite, and the advancement of the major U.S. stablecoin bill did not generate much enthusiasm.
Broader cryptocurrency markets also declined amid few signs of de-escalation in the conflict. Attention is also focused on whether the United States will intervene directly, following sharp rhetoric from President Donald Trump.
Bitcoin fell by 1.8% to $105,376.9 by 07:52 a.m. Saudi time. The cryptocurrency had dropped to $103,000 over the weekend and remained under pressure.
The decline in risk appetite, due to the Israeli-Iranian conflict, was the biggest pressure point on cryptocurrencies. The conflict extended into its sixth day on Wednesday, with a full focus on whether the United States would directly attack Iran.
Night reports indicated that the United States is mobilizing more aircraft to the Middle East, while Trump was also seen considering a direct strike against Tehran. Trump continued his calls for Iran's complete surrender.
While cryptocurrency markets are not directly affected by geopolitical upheavals, their speculative nature makes them susceptible to shifts in sentiment. This trend has kept cryptocurrency markets in a continuous decline since Friday.
The anticipation of the Federal Reserve meeting also kept markets on edge, although bets on a dovish tilt from the central bank were bolstered by weak U.S. economic data.
The U.S. Senate passes the GENIUS Act to regulate stablecoins
The U.S. Senate voted on Tuesday in favor of the GENIUS Act, a bill aimed at creating a regulatory framework for stablecoins and their issuers.
The bill was approved with a 68-30 vote, with bipartisan support, and will now move to the Republican-controlled House before Trump can sign it into law.