Bitcoin dropped below $62,400, extending market selling into a fourth consecutive day. A major focus was Strategy, the Michael Saylor-led company known for its large BTC treasury. Investors have grown uneasy about its dividend-paying preferred shares, STRC. After the security fell below face value, speculation picked up that Strategy might have to sell part of its Bitcoin holdings if it needs to defend its capital structure.
Strategy and miners emerge as key sources of pressure
Analysts said the weakness in STRC has raised expectations that Strategy could turn to BTC sales if conditions tighten. The pressure is not limited to one corporate holder. Marex analysts said Bitcoin has traded below its estimated production cost of $78,000 for five straight months, leaving financially weaker miners under strain. That has brought two possible sellers into focus at the same time: institutional BTC holders and miners facing sustained losses.
Fed-linked risk aversion spills into derivatives
Risk appetite weakened again after the US Federal Reserve meeting on Wednesday, and derivatives markets reflected that shift quickly. More than $450 million in leveraged positions were liquidated over the past 24 hours, with most of the damage hitting bullish trades. Long positioning came under heavier stress. Open interest in BTC and ETH futures changed little, but SOL futures open interest rose above 70 million tokens, close to the record 71.57 million set on June 5. XRP futures open interest also climbed to its highest level since October last year.
Funding rates across several tokens stayed near flat or below zero, a sign that bearish positioning remained in place. Funding in ADA, XLM, and BCH dropped into a -20% to -30% range. During trading sessions, aggressive market selling kept pushing prices lower. That pattern has been visible since at least Wednesday.
Options traders hedge against a $52,000 move
Activity in Bitcoin options showed rising demand for protective puts, pointing to hedging against a slide toward $52,000 or lower in the coming weeks. The one-week 25-delta put skew moved above the 10% volatility premium threshold, adding to signs that traders are paying more for downside protection.
LAB jumps against the market, then draws scrutiny
While the broader market weakened, LAB posted a sharp rally. LAB is the native digital asset of LAB Terminal, a trading infrastructure available through a browser or plugin. Over the past week, the token gained 57%, while its monthly rise reached 92%. The article also listed prior jumps of 250% in April, 900% in May, and 78% in March. Even with those gains, the reason behind the move remains unclear.
Blockchain investigator ZachXBT claimed that 95% of LAB’s token supply is held by internal groups. He also alleged four practices were being used at the same time: high-interest over-the-counter loans, unilateral vesting extensions, delayed or withheld market rewards, and undisclosed market-making agreements. Those claims shifted attention from the rally itself to questions around supply concentration and trading structure.