Bitcoin fell on Wednesday, extending recent losses as the Israel-Iran war raged on an quashed risk appetite, with the progress of a key U.S. stablecoin bill sparking little joy.

Broader crypto markets also retreated amid few signs of deescalation in the conflict. Focus was also on whether the U.S. will directly intervene, following harsh rhetoric from President Donald Trump.

Bitcoin fell 1.8% to $105,376.9 by 00:52 ET (04:52 GMT). The crypto had fallen as low as $103,000 over the weekend, and remained under pressure.

Waning risk appetite, due to the Israel-Iran conflict, was the biggest point of pressure on crypto. The conflict stretched into a sixth day on Wednesday, with focus squarely on whether the U.S. will directly attack Iran.

Overnight reports showed the U.S. mobilizing more jets to the Middle East, while Trump was also seen mulling a direct strike against Tehran. Trump kept up his calls for a total surrender by Iran.

While crypto markets are not directly impacted by geopolitical ructions, their speculative nature leaves them vulnerable to shifts in sentiment. This trend has kept crypto markets on a steady downturn since Friday.

Anticipation of a 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 prints.

US Senate passes GENIUS Act to regulate stablecoins

The U.S. Senate on Tuesday voted in favor of the GENIUS Act, a bill aimed at establishing a regulatory framework for stablecoins and their issuers.#GENIUSActPass #IsraelIranConflict #