The year 2025 has been marked by uncertainty for altcoins, and as the year reaches its midway point, investors are still waiting for a clear turnaround. Many remain unsure where cryptocurrency markets stand within their most frustrating cycle. The growing presence of institutional actors in crypto has altered the market landscape, causing discomfort among long-time investors. Key questions on everyone’s mind include what is currently driving crypto markets, and what lies ahead for major altcoins like XRP and SOL.
Regulatory progress shakes up crypto markets
One of the most significant developments in the past 24 hours came from the US Senate Banking Committee, which moved the CLARITY Act forward by a bipartisan vote of 15-9. The vote raises hopes for the bill’s approval by the full Senate, and points to President Trump potentially signing a comprehensive cryptocurrency regulation before the year’s end. Trump is reportedly aiming to sign the bill by July, and this prospect has helped fuel the latest surge in Bitcoin prices.
Meanwhile, analytics firm Santiment has flagged a growing risk of a downturn, as positive sentiment about Bitcoin increased significantly within the past day. As a result, BTC slipped below the $79,500 mark, reflecting nervousness among traders.
“Historically, when we see 1.55 bullish comments for every 1.00 bearish comment on BTC, we advise caution. Markets tend to move against the crowd’s expectations,” according to Santiment’s analysis.
In other words, the outlook for the coming weekend is not optimistic. However, Santiment suggests that once short-term negativity passes, the impact of the CLARITY Act could push prices higher.
“This could finally bring more concrete regulations to the US crypto sector. Currently, the largest challenge in crypto (especially as we approach 2026) is a lack of clarity. Many companies, investors, and banks hesitate to commit fully, as they don’t know which assets may later be labeled securities, what standards to follow, or if regulators might suddenly crack down. This atmosphere of uncertainty keeps capital on the sidelines,” Santiment’s report adds.
Geopolitical tensions and crypto market reaction
Another major development on the global stage involved Donald Trump’s statements following his return from China. Trump remarked that China had not contributed to resolving tensions in the Strait of Hormuz, and indicated that the US would take the matter into its own hands. Earlier, he had hinted at the possibility of stronger attacks targeting Iran’s infrastructure. With midterm elections approaching, Trump may be preparing a more forceful intervention to pressure Iran into negotiations. On the other side, Iran has threatened to target numerous critical infrastructures, including internet cables and networks belonging to Gulf countries, if provoked.
XRP and SOL Coin: diverging trajectories
The recent dip in the crypto market dealt a blow to investors who had pinned their hopes on XRP. As Santiment previously noted, clarification of regulations could have a disproportionately positive impact on certain altcoins—especially XRP, which aims to establish a crypto-based financial infrastructure in the US. Following the committee’s approval, XRP surged to $1.55. Now, the token is seeking support at $1.42, with local bottom levels expected to form between $1.38 and $1.30 if selling intensifies.
The outlook for Solana (SOL) is more negative, as the coin failed to benefit from the latest bounce and slipped further amid profit-taking. Short-term investors accelerated their sales, pushing the price below the $90 threshold.
Should SOL close below $88, the decline could extend to the $82–$84 range. In cases of extreme selling, local bottoms may even reach the $76–$68 zone, marking the next targets for bearish momentum.
