Bitcoin and Ethereum plummet! Wall Street warns of a looming storm in the 6.6 trillion dollar crypto market.

The cryptocurrency market has plummeted sharply after reaching an all-time high, with Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all experiencing declines, raising concerns about a potential crash. This month, Bitcoin's market capitalization briefly reached a high of 4.2 trillion dollars, but within just a week, the price has fallen from a peak of 124,000 dollars to 114,000 dollars. Meanwhile, Wall Street giants are warning that the new stablecoin regulations under the "GENIUS Act" could trigger capital outflows of up to 6.6 trillion dollars, posing a double impact on the banking system and the crypto market.

Price Plummets: BTC, ETH, XRP Under Pressure

Against the backdrop of weakening market sentiment, the declines of BTC, ETH, and XRP in the past 24 hours are all significant:

BTC: fell below $115,000, reaching an 11-day low and testing the 50-day moving average support since April.

ETH: fell 3.7%, reported at $4,132.

XRP: fall 4.82%, to 2.8933 USD.

Analysts warn that if BTC falls below the critical support level of $112,000, it could trigger further pullbacks to the $105,000–$107,000 range.

Wall Street $6.6 Trillion Stablecoin Warning

JPMorgan Chase, Bank of America and other Wall Street banking groups jointly warned Congress that the loopholes in the "Genius Act" could trigger massive deposit outflows.

The bill allows issuers of stablecoins pegged to the US dollar to pay interest to holders through affiliated entities, which could lead to a massive shift of bank deposits towards stablecoins.

The U.S. Treasury estimated earlier that if stablecoins could offer yields, it could ultimately lead to an outflow of deposits amounting to $6.6 trillion, posing a threat to credit supply and financial market stability.

Competition Among Stablecoins Intensifies, Wall Street and Tech Giants Enter the Fray

Currently, Tether (USDT) remains the largest stablecoin by market capitalization, but it is facing challenges from multiple fronts:

Wall Street: Major banks and financial institutions are actively laying out their own stablecoin plans.

Tech giants: Companies like Meta, PayPal, and Stripe are entering the stablecoin payment field.

Political Power: The Trump family's World Liberty Financial plan explicitly aims to challenge Wall Street's monopoly.

Technical Analysis and Market Sentiment Outlook

FxPro Chief Market Analyst Alex Kuptsikevich pointed out that the crypto market has once again declined after a brief rebound, with the total market capitalization falling to $3.88 trillion, reaching a two-week low.

On the technical front, if BTC loses the 50-day moving average, it will break the upward trend that has been in place since April; the fall of ETH and XRP is already twice that of BTC, indicating that funds are withdrawing from the higher-risk altcoin sector.

In the short term, the market will closely monitor U.S. macroeconomic data and regulatory dynamics, especially the subsequent revisions of the "Genius Act" and the regulatory details of stablecoins.

Conclusion

The sharp fall of Bitcoin and Ethereum, combined with Wall Street's warning of a $6.6 trillion outflow of funds, has caused the short-term risks in the crypto market to escalate dramatically. If regulatory uncertainty and technical pressures both intensify, the market may face a deeper correction. Investors need to closely monitor key support levels such as $112,000 (BTC) and $4,000 (ETH), as well as the impact of stablecoin policies on fund flows.