1. Market Overview
Yesterday, the global crypto market pulled back sharply amid escalating geopolitical tensions and mixed macro signals. Total market cap dropped approximately 3.7%, falling to around $3.26 trillion.
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Bitcoin declined ~2.3%, sliding to near $105,200, with intraday lows dipping as geopolitical conflict intensified.
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Ethereum experienced a steeper fall, plunging ~7.5% to about $2,540, reflecting heightened volatility in the altcoin arena .
Spot ETFs remained active, with Bitcoin-based funds seeing $86 million in inflows and Ethereum ETFs $112 million—though both marked down from the previous day’s totals.
2. Crypto Market Sentiment
Investor risk appetite waned due to fresh Middle East tensions—notably an Israeli airstrike on Iran—which weighed heavily on risk assets including crypto .
In parallel, markets digested conflicting U.S. inflation data: a cooler-than-expected CPI had briefly lifted prices before triggering a reversal driven by over-leveraged liquidations and key support breaches near $3.35 trillion.
The Crypto Fear & Greed Index dropped from 61 (“greed”) to 54 (“neutral”), signaling rising caution.
3. Key Developments
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U.S. Crypto Regulation & Legislation
The U.S. Senate advanced the GENIUS stablecoin bill via a 68–30 cloture vote, moving closer to a regulatory framework that could bring asset backing and oversight.
Meanwhile, David Sacks (White House AI & Crypto Czar) highlighted the Trump administration's pro-crypto stance, noting stablecoin and broader crypto bills are now nearing floor votes in both chambers.
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Stablecoin & Spot ETFs Surge
Despite market dips, total crypto ETF inflows remained significant. The combined purchases signal institutional conviction even amid heightened volatility. -
Traditional Finance & On‑Chain Activity
Coinbase’s stock rose 1.2% amid increased trading volume (~8.5 million shares), coinciding with notable gains in the Base layer‑2 ecosystem, which saw its TVL reach $38.7 billion.
This correlation underscores the growing interplay between traditional equities and DeFi infrastructure.
🧭 Outlook Ahead
With geopolitical and macro pressures still dominating, traders will monitor whether the current dip remains a short-term correction or signals a deeper shift. Upcoming milestones include the final Senate vote on stablecoin regulation and further CPI/PPI data, which could redefine sentiment by mid‑June.
