Concerns around Strategy’s STRC preferred stock continue to dominate sentiment across crypto markets.
Major cryptocurrencies remained under pressure for a fourth straight session, with Bitcoin dropping 2.5% over 24 hours to just below $62,400.
Weakness was broad-based. The CoinDesk 20 Index (CD20) declined 3.3%, while Ether (ETH), XRP, and Solana (SOL) also moved lower. The CoinDesk Smart Contract Platform Select Capped Index fell 4%, with the CoinDesk 80 and DeFi Select Index similarly tracking losses.
Attention remains heavily focused on Strategy (MSTR), the Michael Saylor-led Bitcoin treasury firm, particularly its STRC preferred stock, which has become a key driver of market sentiment.
Marex analysts noted that “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 pointed to added pressure from mining economics, with Bitcoin trading below its estimated $78,000 production cost for five straight months—forcing weaker miners to shut down and adding another layer of potential selling pressure.
Derivatives positioning
Market conditions remain fragile following Wednesday’s more hawkish Federal Reserve meeting. In the past 24 hours, over $450 million in leveraged positions have been liquidated, with longs making up the bulk of those losses.
Open interest in Bitcoin and Ether futures has stayed relatively steady, but Solana futures OI has climbed above 70 million tokens, nearing its early June record of 71.57 million. XRP futures OI is also holding near its highest level since October, suggesting leverage remains elevated and volatility risk is building.
Cumulative volume delta (CVD) across most major tokens is negative on an OI-adjusted basis, aside from TRX and LAB. This indicates that market sell orders are driving price action rather than passive limit buying, a trend that has persisted since midweek.
Funding rates remain weak across most assets, reflecting cautious or bearish sentiment. ADA, XLM, and BCH funding rates have dropped to between -20% and -30%.
In the Bitcoin options market, traders continue to build put positions, preparing for a possible slide toward $52,000 or lower in the coming weeks. One-week 25-delta skew also shows strong downside demand, with puts trading at a significant volatility premium.
Token talk
Speculative momentum in AI-linked tokens continues to stand out despite the broader market downturn. LAB, the native token of LAB Terminal—a browser-based trading platform focused on AI-driven execution and reduced slippage—has rallied sharply.
LAB is up 57% over the past week and 92% this month, following explosive gains of 900% in May, 250% in April, and 78% in March, even as Bitcoin has swung between $68,000 and $63,000.
However, the rally has attracted scrutiny. Blockchain investigator ZachXBT alleged that insiders may control up to 95% of the token supply and pointed to tactics including high-interest OTC loans with promotional conditions, unilateral vesting changes, delayed reward distributions, and undisclosed market-making arrangements.
As the saying goes, rapid gains often come with hidden risks.
