Selling pressure in the cryptocurrency market continued on Wednesday. While Bitcoin fell to its lowest level in 21 months, major altcoins and crypto-focused stocks also accompanied the decline. Analysts stated that the weakness may be linked to the risk aversion trend seen in semiconductor and artificial intelligence stocks.
Sharp pullback in Bitcoin and altcoins
According to CoinGecko data, Bitcoin, the largest digital asset in terms of market value, fell to $ 59.2175 during the day, then recovered to $ 60,700. The loss in the last 24 hours was 2.7%. This outlook ran in line with signs of pressure on Wall Street, pushing Bitcoin close to its third straight daily decline.
The decline in Bitcoin also spread to altcoins. Ethereum lost 3.1% to $1,610. XRP fell 3.1% to $1.07, and Solana lost 2.6% to $67. Dogecoin fell 4.6% to $0.075 during the same period. Weakness in XRP has raised concerns that the asset could sink below $1 for the first time since levels seen following Donald Trump’s 2024 election victory.
| Presence | final price | 24 hour change |
|---|---|---|
| Bitcoin | $60,700 | -2.7% |
| Ethereum | $1,610 | -3.1% |
| XRP | $1.07 | -3.1% |
| solana | 67 dollars | -2.6% |
| dogecoin | $0.075 | -4.6% |
Bitwise senior investment strategist Juan Leon emphasized that such days are undoubtedly painful, but similar periods in the market have been experienced before.
Crypto asset manager Bitwise is known as an investment company focusing on digital assets. Juan Leon from the company said that in the past, sharp declines were perceived as developments that disrupted the market thesis at the time, but technology continued to be adopted as a modern element of the financial infrastructure.
Crypto investment company and ETF issuer 21Shares also drew attention to the weak picture in the market. The company had previously predicted that Bitcoin could break away from the four-year cycle by 2026. But the latest market report, published on Wednesday, acknowledged that nearly six months later, this view has yet to be confirmed. The assessment comes as Bitcoin falls below $60,000 for the second time this month.
21Shares reported that they thought Bitcoin’s four-year cycle might end as we enter 2026, but admitted that at the end of the six months, price movements still resemble this structure.
The pressure on the market also increased ahead of the inflation indicator that the US Federal Reserve closely monitors. Economists had predicted that the personal consumption expenditure index would increase by 4.1% annually on Thursday. This data was expected to accelerate for the third month in a row.
Risk aversion in stocks also affected crypto
According to analysts, investors continued to price in the impact of Fed Chairman Kevin Warsh’s statements last week, pointing to tight monetary policy. The prospect of tighter financial conditions generally puts pressure on risky assets. According to CME Watch data, the market was predicting that the Fed might increase interest rates at its September meeting.
According to the note shared by Wintermute over-the-counter trader Jasper De Maere, it seems that some investors have moved away from the market a little with the weak price movements. It was evaluated that the flows indicate that investors entered the summer period with lower participation, so crypto assets may remain sensitive to a new wave of risk aversion in the equity market.
Losses deepen in crypto stocks
Although Micron Technology led the Nasdaq index’s 0.4% decline, losses were steeper for crypto-related companies. Shares of Strategy, known as the largest institutional holder of Bitcoin, fell 9% to $94.43. The stock hit its lowest level in the last 27 months at $92.28 during the day.
During the same period, Coinbase shares fell 5% to $150.11, and Robinhood shares lost 5.8% to $97.21. The news also stated that the increasing cost pressure on Strategy’s preferred stock product, Stretch, intensified the discussions regarding the company’s cash position.
