Wall Street Warns of $6.6 Trillion Crypto Withdrawal Threat Amid Market Crash Fears

Major cryptocurrencies like Bitcoin, Ethereum, and XRP have experienced sharp declines, sparking fears of a broader market crash. The drop follows Wall Street’s warning that the newly passed Genius Act could trigger massive deposit outflows from traditional banks to stablecoins, threatening financial stability. Analysts predict further declines if Bitcoin fails to hold key support levels.

U.S. banking groups, including JPMorgan and Bank of America, are urging Congress to close a loophole in the Genius Act that allows stablecoin issuers to offer yields. A Treasury report estimates this could lead to $6.6 trillion in withdrawals, destabilizing the banking system. Meanwhile, competition among stablecoin providers like Tether and Meta intensifies.

Political figures, including Trump’s sons, have criticized traditional banks, advocating for crypto alternatives. Market analysts warn of deeper corrections if Bitcoin falls below $112,000, potentially dropping to $105,000. The crypto market’s volatility highlights growing tensions between regulators, banks, and digital asset innovators.

BitcoinEthereumXRPStablecoinsWall StreetCrypto CrashBankingFinanceRegulationTrump