Bitcoin Slides on Geopolitical Tensions; Stablecoin Rush Continues

TL;DR: Bitcoin dipped following Israeli airstrikes on Iran, triggering a flight from risk assets. Walmart and Amazon are exploring stablecoins ahead of the GENIUS Act’s final Senate vote. The XRP Ledger added USDC support a week after Circle’s IPO, and Strategy boosted its BTC holdings to 582,000 coins through another $110M acquisition.

Middle-East Geopolitical Shock Weights on Bitcoin

Bitcoin fell drastically on Thursday and Friday, approaching $102,000 while Ether slid over 10% extending losses below the $2,500 mark, following reports that Israel had launched airstrikes on Iranian military and nuclear infrastructure. The strike, which included explosions near Tehran, escalated tensions in the region and triggered a swift risk-off reaction across global markets. Investors quickly moved into defensive assets, causing a parallel surge in crude oil prices and a sharp selloff in crypto.

Oil futures spiked in tandem with the news. West Texas Intermediate climbed over 7%, as markets priced in the potential for sustained geopolitical disruption. The sharp movement in both commodities and digital assets reflects growing sensitivity to macro and political risks, particularly in the absence of clear monetary policy signals.

Institutional sentiment has shifted accordingly. “Increased geopolitical risk has prompted a shift toward safer assets, with market participants anticipating near-term pressure on crypto valuations,” noted Nick Ruck, director at LVRG Research. Market analysts from Presto Research echoed the concern, citing Thursday’s price action as driven more by defensive positioning than panic selling. With crypto markets still digesting the shock, near-term support levels will be key in gauging institutional re-entry.

Retail Titans Eye Stablecoins for Payment Innovation

Amazon and Walmart are reportedly exploring launching their own USD-backed stablecoins to streamline transactions and reduce cross-border payment costs, according to The Wall Street Journal. While still unconfirmed by either firm, the move reflects growing institutional interest in blockchain-based payment rails, particularly as the U.S. edges closer to formal stablecoin regulation. Both firms generate hundreds of billions in annual global sales, and stablecoin adoption could slash banking fees and enable near-instant settlement at scale.

Shopify has already announced plans to support USDC payments before the end of 2025, and financial institutions like JPMorgan and Wells Fargo are also rumored to be exploring joint stablecoin ventures. These developments underscore a broader trend: major corporate players are beginning to see stablecoins not just as crypto-native tools, but as infrastructure for global commerce.

The proposed U.S. regulatory framework—specifically the GENIUS Act—could accelerate this adoption. As legislation advances and more firms experiment with digital dollars, the gap between crypto-native payments and traditional commerce continues to shrink.

GENIUS Act Final Senate Vote Scheduled for June 17

The U.S. Senate is poised to hold a final vote on the GENIUS Act this Tuesday, potentially paving the way for the first comprehensive U.S. regulatory framework for stablecoins. The legislation mandates that stablecoins be fully backed by liquid dollar-denominated assets, requires annual audits for large issuers, and outlines compliance expectations for offshore players.

The bill has bipartisan support and passed an initial procedural vote last week. If approved, it would move to the House, where it will be reconciled with a similar proposal, the STABLE Act. The two bills differ on oversight responsibilities and state-versus-federal regulation, but lawmakers are signaling urgency to align on final language ahead of Congress’ August recess.

The GENIUS Act has become a focal point for the institutional crypto community. Treasury Secretary Scott Bessent recently stated the bill could catalyze the USD stablecoin market to exceed $2 trillion by 2028. With Circle, Tether, and new corporate entrants like PayPal and potentially Amazon and Walmart in play, a clear legal framework could mark a watershed moment for mainstream stablecoin adoption.

XRP Ledger Adds USDC Support Following Circle’s IPO Surge

USDC is now live on the XRP Ledger (XRPL), marking the latest expansion of the world’s second-largest stablecoin into a major Layer 1 blockchain. The integration comes just one week after Circle completed its IPO, with shares soaring nearly 200% above the $30 listing price. XRPL joins the growing list of networks supported by Circle Mint and Circle’s API infrastructure.

The move strengthens XRPL’s position in cross-border payments and sets the stage for broader adoption of USDC across financial applications built on the network. Developers and institutional users now gain access to faster, cheaper settlement using Circle’s trusted collateralized stablecoin, backed 1:1 with USD.

Meanwhile, XRP continues to rank as one of the largest cryptocurrencies by market cap, with $2.2 billion in daily trading volume. The network also plans to roll out an Ethereum-compatible EVM sidechain in the coming months, potentially opening the door to further DeFi and institutional activity. Circle’s growing reach reflects both regulatory momentum and market demand for compliant, scalable stablecoins.

Strategy Adds 1,045 BTC, Topping 582,000 Coins in Treasury

Strategy (formerly MicroStrategy) has added another 1,045 BTC to its balance sheet, purchasing $110.2 million worth of bitcoin at an average price of $105,426 between June 2 and 8. This brings its total holdings to 582,000 BTC, valued at over $62 billion. The purchases were funded through the company’s preferred stock ATM programs, which continue to be a core component of its Bitcoin acquisition strategy.

Strategy has now amassed nearly 2.8% of Bitcoin’s total supply, with an average cost basis of $70,086 per coin. The company’s ongoing capital raise—dubbed the “42/42 Plan”—targets $84 billion in total funding for BTC acquisitions through 2027. In addition to STRK and STRF, the firm is rolling out a new preferred stock, STRD, offering a 10% dividend to investors.

Despite concerns about its premium-to-NAV valuation, Strategy’s market cap has held strong at over $100 billion. Analysts at Bernstein estimate corporate treasuries could add $330 billion in BTC over the next five years, especially under a more pro-crypto U.S. administration. Strategy’s leadership position, capital markets execution, and aggressive accumulation remain unmatched in the corporate Bitcoin space.