Concerns surrounding Strategy’s STRC preferred stock continue to dominate sentiment across crypto markets.
The largest cryptocurrencies remained under pressure for a fourth consecutive day, with Bitcoin falling 2.5% over 24 hours to just under $62,400.
Losses were widespread. The CoinDesk 20 Index (CD20) dropped 3.3%, while Ether (ETH), XRP, and Solana (SOL) also traded lower. The CoinDesk Smart Contract Platform Select Capped Index fell 4%, and both the CoinDesk 80 and DeFi Select Index followed with similar declines.
Market attention remains centered on Strategy (MSTR), the Michael Saylor-led Bitcoin treasury company, particularly its STRC preferred stock, which has become a key sentiment driver.
Marex analysts said, “Strategy, the largest listed BTC holder, has watched its STRC preferred collapse below par, and the market is now openly pricing the tail that it has to sell coins to defend the structure.”
They also highlighted additional pressure from mining economics, noting that Bitcoin has traded below its estimated $78,000 production cost for five consecutive months, forcing weaker miners out of the market and adding to potential selling pressure.
Derivatives positioning
Markets remain fragile following Wednesday’s more hawkish Federal Reserve meeting. Over the past 24 hours, more than $450 million in leveraged positions were liquidated, with the majority coming from long trades.
Open interest in Bitcoin and Ether futures has stayed broadly stable, but Solana futures OI has climbed above 70 million tokens, approaching its June 5 record of 71.57 million. XRP futures OI is also near its highest level since October, signaling elevated leverage and heightened volatility risk.
Cumulative volume delta (CVD) across most major tokens is negative on an OI-adjusted basis, with TRX and LAB as exceptions. This suggests aggressive selling via market orders is driving price action, rather than passive buying support—a trend that has persisted since midweek.
Funding rates remain weak across most assets, reinforcing a cautious-to-bearish tone. ADA, XLM, and BCH funding rates have fallen into the -20% to -30% range.
In the Bitcoin options market, traders continue to accumulate put positions, hedging for a potential decline toward $52,000 or lower in the coming weeks. One-week 25-delta skew also shows elevated demand for downside protection, with puts trading at a significant volatility premium.
Token talk
Speculative enthusiasm in AI-related tokens continues to stand out despite broad market weakness. LAB, the native token of LAB Terminal—a browser-based trading platform focused on AI-driven execution and slippage reduction—has posted strong gains.
LAB is up 57% over the past week and 92% this month, following earlier monthly surges of 900% in May, 250% in April, and 78% in March, even as Bitcoin has fluctuated between $68,000 and $63,000.
However, the rally has drawn scrutiny. Blockchain investigator ZachXBT claimed insiders may control up to 95% of the token supply and alleged practices including high-interest OTC loans with promotional terms, unilateral vesting adjustments, delayed rewards, and undisclosed market-making arrangements.
As the saying goes, steep gains can sometimes hide deeper risks underneath.
