Markets dropped after U.S. strike on Iran
Investors are cautious as tensions in the Middle East affect market sentiment. Bitcoin dropped below €86,000, while many altcoins took even harder hits. However, there are still positive developments happening in the background. For example, the U.S. Senate has passed a stablecoin bill, and the regulator is moving toward approval of Solana ETFs. More on that in this edition of Bitvavo Market News.
Market update
Concerns about military action in the Middle East dominated financial markets last week. There has been no extreme volatility, but investors have clearly become more risk-averse.
This was also reflected in the crypto market. The price of bitcoin fell from prices around €92,500 to a low of €85,500 between Sunday night and Monday morning. That's the lowest level since May 7 and a 14% drop from the peak of €99,500 on May 22.
Many altcoins were hit even harder. ETH fell as much as 27% from its recent high, and SOL dropped 34%. Memecoins also took a heavy hit with many seeing declines of more than 50% in a month. On social media, some investors are taking a pessimistic view, claiming that a new bear market has started, similar to what we saw in 2022.
But that may be jumping the gun. Although many altcoins have performed worse than bitcoin over the past four years, they still tend to follow its lead. As for bitcoin, we're not in bear market territory yet as the price is still well above the long-term average. Only if it drops below this might it be time to worry.
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US moves closer to approving Solana ETFs
The U.S. stock market watchdog, the SEC, appears to be getting closer to approving a Solana ETF. According to sources at Blockworks, several applicants (including 21Shares, VanEck, Grayscale, and Fidelity) have received feedback on their applications in recent weeks. Among other things, the SEC has asked for clarification on so-called in-kind distributions and the role of staking within the proposed funds. If the requested changes are made, an official response is expected within 30 days.
What stands out is that this time, the regulator seems open to including staking as part of an ETF, which is a new development. When ETH ETFs were approved, staking was still excluded. That changed with a new guideline introduced at the end of May 2025, which now allows staking to be formally included in a US ETF structure.
According to Bloomberg analyst James Seyffart, the probability of approval has now risen to 90%. Although the official deadline is not until October, he does not rule out a decision from the SEC as early as July. Other analysts and sources also mention a faster review process, with the SEC seemingly moving quickly to clarify the rules, especially as multiple similar products are being submitted at the same time.
If a solana ETF is approved, chances are that XRP funds will soon follow. And equally important: if the SEC officially allows staking within an ETF, it marks a major shift in U.S. crypto regulation. Just last year, crypto platforms in the U.S. were fined for offering staking services.
For now, investors are eagerly awaiting the outcome. An ETF would lower the threshold for investors who want exposure to solana without having to manage tokens themselves. It would also give institutional parties easier access. That could create additional demand and potentially push up the price of SOL.
In other news
BBVA recommends wealthy customers allocate up to 7% to bitcoin. Spain's third largest bank has been actively advising wealthy clients on bitcoin since September. "For a high risk profile, up to 7% is appropriate," BBVA said. Even 3% could "improve performance without taking on major risk." According to Herbert Blankesteijn, this underlines a significant development in how Bitcoin is viewed: from pariah to a key part of a modern investment strategy.
Michael Saylor becomes bitcoin advisor to Pakistan. The billionaire has been appointed strategic advisor to the Pakistani government. The appointment follows a meeting on June 16 with the country's finance minister and Bilal Bin Saqib, who previously announced plans for a strategic bitcoin reserve. The timing is striking: Pakistan is struggling with economic malaise and an ailing $8 billion sovereign wealth fund - a fraction of Saylor's bitcoin holdings.
TRON plans US stock market listing, with a twist. Justin Sun's business group is aiming for a US stock market listing through a backdoor move: it will merge with Nasdaq-limited company SRM, which will be renamed Tron Inc. and will manage $210 million in TRX tokens. Notably, the deal is being overseen by Dominari Securities, a firm closely linked to Donald and Eric Trump. The SEC dropped an investigation into Sun earlier this year, which has paved the way for this step.
Stablecoin bill GENIUS passed by U.S. Senate. Trump wants the bill on his desk for signature as soon as possible with "no delays, no add-ons." The law is seen as a major win for companies like Circle and Coinbase, while posing a threat to traditional payment networks. Analyst Nic Carter calls stablecoins an "economic weapon": helping spread the use of the dollar and potentially getting America's budget back on track.
🇺🇸Satoshi Radio: In the latest episode of Satoshi Radio you get a guided tour of the latest news. The hosts cover topics such as the disappearance of cash, the stablecoin law GENIUS, and BitVM, a new protocol for running smart contracts on bitcoin. The episode closes with an extensive market update: what to make of the tug-of-war between bulls and bears?
This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.