Why Crypto Market Is Down? FOMC, GENIUS Act, More Behind Today’s Crash

As of June 18, 2025, the global crypto market cap has dropped to $3.24 trillion, down 1.05% in the past 24 hours. Bitcoin, the largest cryptocurrency, is struggling to hold its key levels near $104K. At the same time, overall trading activity is slowing, sparking major concern across traders and investors.

Many are asking: Why is the crypto market falling?
The answer isn’t one single event—but a mix of regulatory shifts, macro uncertainty, and key developments in stablecoins and ETFs. Let’s break down the top 5 headlines today that explain why crypto market is down and what might happen next.

1. Coinbase Derivatives to Use USDC for Futures Trading

In a game-changing move, Coinbase Derivatives will begin accepting USDC stablecoin as collateral for U.S. futures trading from 2026, in partnership with Nodal Clear, as per Wu Blockchain latest X post. Currently, only fiat currencies are used.

Source: Wu Blockchain Data

This update is a major part of the latest cryptocurrency news as Coinbase pushes for broader institutional access.

2. Trump Criticizes Fed Ahead of Crucial FOMC Decision

Former President Donald Trump has fired shots at Fed Chair Jerome Powell, saying the Fed "probably won’t cut today" and calling Powell “not a smart guy.” With the FOMC meeting scheduled later today , this uncertainty is a big reason behind today's crypto market crash. Traders are bracing for interest rate shockwaves, which often affect both traditional and digital markets, especially during macroeconomic downturns.

3. XRP ETF Launched in Canada with Ripple's Support

Canada's leading asset manager 3iQ has launched the XRP ETF (XRPQ) on the Toronto Stock Exchange, backed by Ripple. Although XRP has dropped 2.67% to $2.14, the move brings new institutional exposure to XRP.

Source: Coin Bureau

While this may not immediately impact prices, it’s an important development in understanding what are the reasons behind crypto market crash today—price doesn't always reflect progress instantly.

4. JPMorgan Unveils JPMD Stablecoin on Public Blockchain

It's worth noting that JPMorgan Chase has initiated JPMD, a US dollar deposit token on the Base blockchain & intended for institutional clients, with the possibility of exploring 24/7 flowing transfers. Notably, historical entry into the stablecoin space has begun, with traditional banks competing with major players in the space such as: Tether (USDT) and Circle (USDC).

5. U.S. Senate Passes the GENIUS Act for Stablecoins

The GENIUS Act was approved and passed by the U.S. Senate with votes of 68–30 announcing a definite set of regulations for payment stablecoins. It requires 1:1 dollar reserves, monthly audits, and further removed stablecoins from SEC jurisdiction. This regulation is a major factor in why crypto market is down, as investors react to legal shifts.

Conclusion: Crypto Crash or Long-Term Opportunity?

So, why crypto market is down today? It's a combination of regulatory uncertainty, central bank pressure, and institutional momentum.  For example, from Trump's comments about the Fed to the GENIUS Act, these stories are not just news stories - they are shaping the future.

While there is a short term drop in price, smart money is watching the pieces being laid - such as Coinbase expanded USDC usage, Ripple-backed ETF's, and JP Morgan beginning to enter the stable coin space.

Disclaimer: This article is for educational purposes only and based on real-time market updates and writer analysis. Please DYOR (Do Your Own Research) before making financial decisions.