Crypto News Today: Here’s Why Market Is Up and Major Crash Risks

Crypto Market Rebounds Amid Regulatory Hopes, But Global Tensions Cast a Shadow

After a sharp plunge that saw over 5% wiped from the global crypto market in a single day, cryptocurrency prices have rebounded slightly, offering a glimmer of optimism to investors worldwide. As of this morning, the total cryptocurrency market capitalization stands at $3.27 trillion, up by around 1% over the past 24 hours. Trading activity remains brisk, with daily volume hitting nearly $99.6 billion. Bitcoin continues to dominate the sector, accounting for 61.5% of the market share, while Ethereum holds 9.01%.

But what’s behind this cautious uptick in crypto prices? Several key developments have boosted sentiment, although significant global risks still loom that could erase these gains just as quickly.

Source: Coinglaass

U.S. GENIUS Act Stablecoin Bill Sparks Market Optimism

One of the primary drivers of today’s market bounce is growing investor confidence surrounding the long-awaited GENIUS Act Stablecoin Bill. Set for a crucial Senate vote on June 17, this bill represents one of the most comprehensive efforts yet to provide regulatory clarity for stablecoins in the United States.

The GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoin—seeks to define rules for issuing and managing stablecoins while implementing safeguards designed to protect consumers and the broader financial system. Notably, the legislation also includes provisions that would ban elected officials and their immediate family members from profiting from crypto holdings, a move designed to restore public trust amid rising scrutiny of lawmakers’ financial interests.

For crypto investors, this regulatory clarity is seen as a much-needed step toward mainstream acceptance and stability. Clearer rules could encourage institutional participation, reduce market volatility, and help the U.S. keep pace with global competitors in the digital asset space.

Liquidation Heatmap Reveals Aggressive Buying

Another significant indicator fueling today’s market recovery is the liquidation heatmap, which turned green over the last 12 hours. More than $55.9 million in positions were liquidated, with long positions accounting for $38.47 million of that total. Short traders suffered losses of $17.43 million. The green heatmap signals that aggressive buying has returned, with traders stepping in to take advantage of what they see as a temporary dip in prices.

While this pattern may suggest renewed confidence, experts warn that such sharp liquidations can also increase volatility, as markets react to sudden position closures and margin calls.

Trump Media’s Bold Bitcoin Treasury Plan Adds Fuel

Adding to the bullish sentiment is the announcement that Trump Media & Technology Group has secured regulatory approval for its Bitcoin Treasury initiative. The plan, which involves a $2.3 billion expansion through equity shares and convertible notes, seeks to integrate Bitcoin into the firm’s treasury operations to support its growing fintech and media ambitions.

The approval by the U.S. Securities and Exchange Commission (SEC) has been widely seen as another sign that regulators are gradually warming to digital assets—at least when implemented through regulated, transparent channels. The move comes amid reports that former President Donald Trump has amassed more than $600 million in digital assets, including over 15 billion governance tokens from World Liberty Financial.

Institutional Support Remains Robust

Underscoring this positive momentum is the fact that over 235 institutions now hold more than 3.4 million Bitcoin on their balance sheets. This sustained institutional interest provides a stabilizing force for the market, offering liquidity and signaling that large players continue to see value in holding digital assets even during volatile periods.

Fear and Greed Index Shows Shift to Optimism

Another key barometer of market sentiment—the Fear and Greed Index—has shifted notably in recent days. Now sitting at 63, the index has moved from neutral territory (52) just a week ago into what analysts term the “greed zone.” While this shift reflects growing investor confidence, history suggests that excessive greed can often precede market corrections, meaning traders would be wise to remain cautious.

The Global Risks That Could Reverse the Recovery

Despite today’s rebound, the crypto market faces an array of serious global threats that could quickly derail this fragile recovery.

Perhaps most concerning are escalating tensions in the Middle East. Reports indicate that Iran launched an attack on a nuclear facility in Dimona, Israel, while also threatening U.S. military installations in the region. This has already triggered widespread panic in global financial markets, with the Dow Jones Industrial Average plunging more than 900 points in a single day.

Compounding these geopolitical concerns are renewed fears of a trade war. The Trump administration’s tariff policies have sparked fresh tensions with key trading partners, raising fears of broader economic disruption. At the same time, the Federal Reserve has delayed anticipated interest rate cuts, pushing 10-year bond yields to nearly 4.5%. Oil prices, meanwhile, have surged by 40% in just two months, further stoking fears of stagflation.

Source: X

Analysts at The Kobeissi Letter warn that these multiple red flags—including rising U.S. debt levels and deepening energy market instability—could create the perfect storm for a renewed crypto market collapse.

Conclusion: A Market at the Crossroads

Today’s crypto market gains offer a rare bright spot in what has been a turbulent month for digital assets. Legislative progress, aggressive buying activity, and positive institutional developments have combined to deliver a short-term rebound. But investors should not lose sight of the larger risks. With tensions rising in the Middle East, trade disputes flaring, and global financial conditions tightening, the road ahead is anything but certain.

As always, crypto investors are urged to stay informed, practice sound risk management, and avoid overextending themselves in a market known for its rapid swings and unexpected turns. While the market’s resilience is encouraging, it may ultimately prove to be a temporary reprieve rather than a lasting reversal of fortune.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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