Bitcoin fell as low as $59,217 during the day before rebounding to $60,700, leaving it down 2.7% over 24 hours, according to CoinGecko. The move tracked broader weakness on Wall Street and pushed the market closer to a third straight daily decline for the largest cryptocurrency.
The slide spread quickly across major altcoins. Ethereum dropped 3.1% to $1,610, XRP also lost 3.1% to $1.07, Solana fell 2.6% to $67, and Dogecoin declined 4.6% to $0.075. Traders were also watching whether XRP could fall below the $1 level.
Bitwise says sharp selloffs are familiar
Bitwise senior investment strategist Juan Leon said sessions like this can be painful, but they are not new for the market. He said sharp drawdowns are often seen at the time as a challenge to the broader crypto thesis, yet the underlying technology continues to gain adoption as part of modern financial infrastructure.
21Shares backs away from a break in the four-year cycle
Crypto investment firm and ETF issuer 21Shares also addressed the ongoing weakness. The firm had previously argued that Bitcoin could move beyond its historic four-year cycle by 2026. In its latest market report published Wednesday, 21Shares said that after six months, the forecast has still not been confirmed. That update came as Bitcoin fell below $60,000 for the second time this month.
According to the firm, it had expected Bitcoin’s four-year cycle to end as 2026 approached, but price action still largely follows the established pattern.
Inflation expectations and equity caution weigh on sentiment
Pressure built ahead of closely watched US inflation data. Economists expected the Personal Consumption Expenditures Index to show a 4.1% year-on-year increase on Thursday, which would mark a third consecutive month of acceleration.
Analysts said investors were still pricing in the effect of recent hawkish monetary policy comments from Federal Reserve Chair Kevin Warsh. Expectations for tighter financial conditions tend to weigh on risk assets. CME Watch data showed the market was factoring in the possibility of a Fed rate hike at the September meeting. Wintermute OTC trader Jasper De Maere said in a market note that weaker price action had led some investors to cut participation, and that softer summer flows left crypto more exposed to another wave of risk-off trading in equities.
Crypto-linked stocks fall harder than the market
The Nasdaq lost 0.4% on the day, led by weakness in Micron Technology, but declines were steeper among crypto-related public companies. Strategy, the largest institutional holder of Bitcoin, dropped 9% to $94.43 and touched $92.28 intraday, a 27-month low.
Coinbase fell 5% to $150.11, while Robinhood lost 5.8% to $97.21. The report also said cost pressure tied to Strategy’s preferred Stretch share product was increasing, adding to discussion around the company’s cash position.