Sell pressure persisted in the cryptocurrency market on Wednesday, pushing Bitcoin to its lowest level in 21 months as leading altcoins and crypto-focused stocks also declined. Analysts suggested this weakness could be linked to a broader risk-off trend impacting semiconductor and artificial intelligence stocks.
Sharp downturn in Bitcoin and altcoins
According to CoinGecko, Bitcoin, the world’s largest digital asset by market capitalization, dropped to as low as $59,217 during the day before recovering to $60,700. The coin registered a 2.7% loss over 24 hours. This downside momentum mirrored mounting pressures on Wall Street, bringing Bitcoin closer to its third consecutive daily fall.
Bitcoin’s slide triggered broader declines among altcoins. Ethereum fell 3.1% to $1,610. XRP dropped the same percentage to $1.07, while Solana dipped 2.6% to $67. Dogecoin, meanwhile, sank 4.6% to $0.075 in the same timeframe. There are mounting concerns that XRP could soon dip below $1 for the first time since the post-2024 election rally attributed to Donald Trump’s presidential win.
| Asset | Latest price | 24h change |
|---|---|---|
| Bitcoin | $60,700 | -2.7% |
| Ethereum | $1,610 | -3.1% |
| XRP | $1.07 | -3.1% |
| Solana | $67 | -2.6% |
| Dogecoin | $0.075 | -4.6% |
Bitwise Senior Investment Strategist Juan Leon emphasized that while days like this can be painful, the market has experienced similar periods before.
Bitwise, a leading digital asset investment firm, offers products focused exclusively on cryptocurrencies. Juan Leon from Bitwise noted that sharp selloffs are often perceived at the time as undermining the market thesis. However, he highlighted that despite the turbulence, technology continues to be adopted as a vital part of modern financial infrastructure.
21Shares drops four year cycle thesis
Crypto investment firm and ETF issuer 21Shares also addressed persistent market weakness. The company had previously suggested that Bitcoin could break out of its historic four year cycle by 2026. In its latest market report published Wednesday, however, 21Shares conceded that, six months on, this forecast has not yet been validated. The statement came as Bitcoin dipped below $60,000 for the second time this month.
21Shares stated that while they anticipated the end of Bitcoin’s four year cycle entering 2026, after six months, price action still largely follows this established pattern.
Market pressures intensified in the run-up to key US inflation data closely watched by the Federal Reserve. Economists predicted the Personal Consumption Expenditures Index would show a 4.1% year-on-year rise on Thursday, marking its third straight month of acceleration.
Risk-off sentiment in equities weighs on crypto
Analysts noted that investors continued to price in the influence of Federal Reserve Chair Kevin Warsh’s recent hawkish comments on monetary policy. Expectations of tighter financial conditions typically exert additional pressure on risk assets. CME Watch data indicated that the market is currently factoring in a possible Fed rate hike at the September meeting.
According to a note shared by Wintermute OTC trader Jasper De Maere, weaker price trends have led some investors to scale back market participation. He pointed to summer flows as an indication of reduced engagement, which could leave cryptocurrencies exposed to fresh waves of risk-off trading in equities.
Losses deepen for crypto stocks
A 0.4% drop in the Nasdaq was led by declines in Micron Technology, but losses were sharper among crypto-related public companies. Shares of Strategy, the largest institutional Bitcoin holder, tumbled 9% to $94.43, touching $92.28 at one point for a 27 month low.
Coinbase stock slid 5% to $150.11 during the session, while Robinhood fell 5.8% to $97.21. The report also highlighted rising cost pressures on Strategy’s preferred Stretch share product, intensifying discussions over the company’s cash position.
