Bitcoin Sinks Nearly 4%, Dragging Total Crypto Market Cap to $3.38 Trillion

Cryptocurrency prices slid again on Wednesday, with nearly every major token in the red. Just two of the hundred largest coins managed gains, while total market value dropped 3.9 percent to about $3.38 trillion. Turnover held near $112 billion, matching Tuesday and signaling that the move was driven more by sellers than fresh capital.
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Analysts cited escalating Middle‑East tensions, a cautious Federal Reserve, and unpredictability around tariffs for the colder mood. Bitcoin led declines. The flagship asset lost 1.6 percent, breaking below $105,000 and finding support near $104,971.
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A slide through $104,633 could trigger another burst of profit‑taking, potentially shaving 10 to 20 percent if geopolitics worsen and investors flee to safer havens. Even so, the coin remains within striking distance of April’s $111,814 record, meaning a rebound is still plausible if macro clouds part.

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Ether fell roughly two percent, sinking from $2,584 to $2,464 before recovering to $2,530 by press time. Futures funding rates eased as traders trimmed bullish bets ahead of Chair Jerome Powell’s remarks, wary a hawkish tilt might lift Treasury yields and the dollar.

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All top‑ten cryptocurrencies were lower. XRP posted the steepest drop, sliding 3.6 percent to $2.15, followed closely by Solana’s 3.5 percent retreat to $147. Tron weathered the storm best, slipping just 1.1 percent to $0.2742.

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Among smaller caps, bright spots were scarce. Utility token Kaia added 6.1 percent to $0.1644, and lender Nexo edged 0.6 percent higher to $1.23. Sky Network was the day’s worst laggard, falling 8.8 percent to $0.08404.

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Canada delivered a headline that briefly took XRP fans’ minds off the sell‑off. Regulators cleared the continent’s first exchange‑traded funds tied to Ripple’s token: Purpose Investments’ Purpose XRP ETF (XRPP) and Evolve’s competing vehicle will both launch on the Toronto Stock Exchange on June 18. Supporters hope institutional investors who cannot hold tokens directly will embrace these products, deepening liquidity.

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Stable‑value tokens also entered the policy spotlight. The U.S. Senate approved the long‑discussed GENIUS Act, America’s first bill focused squarely on regulating dollar‑pegged crypto assets. The measure now heads to the House of Representatives after bipartisan talks that tightened rules on money laundering and systemic risk.
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Liat Shetret of Elliptic called the vote “a pivotal step,” arguing that stablecoins are becoming a bedrock of modern finance and need clear guardrails to protect users and preserve U.S. dollar dominance online.

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Fresh money continued to flow into crypto‑linked securities even as spot prices sagged. U.S. Bitcoin exchange‑traded funds attracted $216.48 million in net subscriptions Tuesday, their seventh straight day of inflows. BlackRock’s iShares product accounted for $639 million of that total, though redemptions elsewhere offset much of the haul.
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Ether funds, launched only weeks ago, gathered $11.09 million; Grayscale’s converted trust pulled in $36.71 million and Bitwise saw $3.62 million, pushing combined net inflows near $3.9 billion. Sentiment, however, has soured.
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The widely watched Crypto Fear and Greed Index slipped from 54 into the lower half of neutral, its weakest level in several days and a sign that fear is creeping in.
Historically, extreme fear can mark durable bottoms, but analysts caution that this time macro headwinds could prolong caution.

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Those headwinds were apparent in equities: the S&P 500 lost 0.84 percent, the Nasdaq‑100 fell 1 percent, and the Dow shed 0.7 percent on Tuesday. Correlation between digital assets and stocks has tightened recently, so equity weakness often spills into crypto when traders broadly de‑risk.

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Looking ahead, two catalysts loom large. First, investors will parse Thursday’s Federal Reserve press conference for clues about rate‑cut timing and balance‑sheet plans.
Second, markets remain on alert for any shift in U.S. military posture toward Iran after last week’s Israeli strikes.
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A dovish Fed and signs of de‑escalation could entice dip‑buyers back, especially with ongoing ETF demand providing underlying support.
Conversely, hawkish rhetoric or deeper American involvement in the conflict would likely keep prices on the defensive and could drag Bitcoin toward the high‑$90,000s.

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In short, the crypto landscape now sits at the crossroads of monetary policy, geopolitics, and evolving regulation. Until those story lines resolve, volatility is set to remain elevated, rewarding nimble traders and testing the conviction of long‑term holders. Observers note that summer trading can exaggerate swings as liquidity thins across both centralized exchanges and decentralized venues.

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