The cryptocurrency market experienced another sharp sell-off today, with Bitcoin dropping to $58,050, its lowest price since October 2024. The latest move followed a brief rebound yesterday, June 24, when crypto markets recovered alongside U.S. equities after Micron reported stronger-than-expected earnings.
That rally helped Bitcoin climb from the low $59,000 range back above $61,000. However, renewed selling pressure quickly reversed those gains during Thursday's session.
Solana also came under pressure during the broader market decline, briefly falling to $64 before attempting to stabilize alongside the rest of the market.
Bitcoin Drops to 20 Month Low
Bitcoin's decline to $58,050 marks its lowest level since October 2024 and extends a downward trend that has dominated the past several trading sessions.
TradingView data shows Bitcoin steadily losing ground over the past 2 weeks before accelerating lower during the latest sell-off. Although buyers stepped in after the sharp decline, the recovery remained limited, leaving Bitcoin trading well below the levels seen earlier this month.
The latest move erased much of the optimism that had emerged only a day earlier, as stronger equity market performance had helped support risk assets.
More Than $1.2 Billion in Liquidations
The sharp decline triggered another wave of forced liquidations across crypto derivatives markets. According to CoinGlass, total liquidations reached approximately $1.21 billion over the past 24 hours, affecting 170,139 traders. Long positions accounted for the overwhelming majority of losses with $910.83 million.
Bitcoin led all assets with $551.42 million in liquidations, while Ethereum followed with $289.91 million. XRP recorded $44.74 million in liquidations, and Solana accounted for $40.30 million.
The data illustrates how quickly leveraged positions unraveled as prices accelerated lower throughout the trading session.
Strategy's STRC Falls to a Record Low
The market downturn has been largely attributed to growing fears that Michael Saylor could be forced to sell Strategy’s Bitcoin holdings. $STRC fell to a record low of $74, about 26% below its $100 par value. The shares carry an 11.5% annual dividend, implying roughly $1.2 billion in yearly payments across 104.89 million shares. Strategy currently holds about $1.4 billion in U.S. dollar reserves.
Unlike debt, these dividends are not mandatory. Strategy can suspend payments without triggering liquidation, and Michael Saylor faces no forced liquidation tied to $STRC's price. Instead, $STRC reflects investor confidence in Strategy's ability to sustain dividends and raise capital. The decline may signal concerns about future payments, fundraising capacity, or shifting investor preferences.
Additionally, Rosen Law Firm has launched an investigation into Strategy, examining whether the company and its executives made materially misleading statements about its business operations, Bitcoin treasury strategy, profitability, and risks tied to its aggressive accumulation model.
The probe covers multiple Strategy-linked securities, including $MSTR, $STRF, $STRC, $STRK, and $STRD, and invites investors to participate in a potential class action. While the investigation does not allege wrongdoing, it comes amid heightened volatility across Strategy-related instruments.
Adding to the pressure, a burst of massive put buying at exactly 9:30 am ET sparked a sharp drop in $MSTR shares, which in turn contributed to Bitcoin's decline.
Are Crypto Bros Panicking?
Investor sentiment deteriorated rapidly alongside falling prices. CoinMarketCap's Crypto Fear and Greed Index dropped to 16, placing market sentiment firmly in the "Extreme Fear" category.
The reading marks one of the lowest levels recorded in several months and reflects growing caution among investors following the latest wave of volatility. Historically, periods of extreme fear have often coincided with elevated volatility as traders reduce risk and wait for stronger market direction.
Only one day after equities helped fuel a crypto rebound, renewed selling pushed Bitcoin to its lowest level in 20 months, triggered more than $1.2 billion in liquidations, weakened confidence in Strategy's preferred shares, and drove market sentiment into extreme fear territory. As sentiment turns fully negative on crypto, some traders are still hopeful that this is the last leg down and that the bottom is in.
However, it is unlikely that a definitive market bottom will be established until Strategy’s situation becomes clearer and investors are confident that there will be no lingering overhang from its capital structure.
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