Major cryptocurrencies extended their decline for a fourth consecutive day as selling pressure mounted across digital asset markets. Bitcoin dropped 2.5% to just below $62,400, while the CoinDesk 20 Index fell 3.3%. Smart contract platforms and DeFi tokens saw even steeper losses, signaling broad-based weakness.
Market sentiment has deteriorated regarding Strategy and its STRC preferred stock. Investors fear the Michael Saylor-led firm and financially stressed bitcoin miners could become forced sellers after months of prices trading below estimated production costs. Analysts at Marex note that STRC has collapsed below par, suggesting the market is pricing in potential coin sales to defend the corporate structure.
Derivatives markets reflect this bearish shift. Over $450 million in leveraged long positions were liquidated in the past 24 hours following a hawkish Federal Reserve meeting. Despite the sell-off, open interest remains elevated, indicating high leverage and potential for continued volatility. Funding rates have turned negative for major tokens, and options traders are actively purchasing puts to hedge against a slide toward $52,000.
Amid the broader malaise, the LAB token surged 57% in seven days driven by AI sector enthusiasm. However, blockchain investigators warn that insiders reportedly own 95% of the supply. Allegations of undisclosed market-making deals and withheld rewards suggest significant risk beneath the token's speculative rally.