Concerns surrounding Strategy’s dividend-paying preferred stock, STRC, continue to dominate market sentiment.
The largest cryptocurrencies stayed under pressure for a fourth consecutive day, with Bitcoin slipping 2.5% over the past 24 hours to just under $62,400.
Weakness wasn’t isolated. The CoinDesk 20 Index (CD20) fell 3.3%, while Ether (ETH), XRP, and Solana (SOL) also traded lower. The CoinDesk Smart Contract Platform Select Capped Index declined 4%, with the CoinDesk 80 and DeFi Select Index also tracking losses.
Investor focus remains heavily fixed on Strategy (MSTR), the Michael Saylor-led Bitcoin treasury firm, particularly its STRC preferred stock, which continues to shape broader sentiment.
According to Marex analysts, “Strategy, the largest listed BTC holder, has watched its STRC preferred collapse below par, and the market is now openly pricing the tail that it has to sell coins to defend the structure.”
They added that an additional headwind is emerging from Bitcoin mining economics: BTC has traded below its estimated $78,000 production cost for five consecutive months, pressuring weaker miners into capitulation and introducing new forced sellers into the market.
Derivatives positioning
Market conditions remain fragile following Wednesday’s more hawkish Federal Reserve stance. Over the past 24 hours, more than $450 million in leveraged positions have been liquidated, with long positions accounting for the majority of the wipeout.
Open interest in Bitcoin and Ether futures has remained relatively stable, but Solana futures OI has climbed above 70 million tokens, nearing its June 5 peak of 71.57 million. XRP futures OI is also sitting near its highest level since October, suggesting leverage remains elevated and volatility risk is still present.
Cumulative volume delta (CVD) across most major tokens is negative on an OI-adjusted basis, except for TRX and LAB. This indicates that aggressive market sell orders are driving price action rather than passive buying support, a pattern that has persisted since midweek.
Funding rates remain weak across much of the market, reinforcing bearish positioning. ADA, XLM, and BCH funding rates have dropped into the -20% to -30% range.
In the Bitcoin options market, traders continue to accumulate put options, positioning for a potential move toward $52,000 or lower in the coming weeks. One-week 25-delta skew also reflects downside demand, with puts trading at a volatility premium of 10% or more.
Token talk
Signs of speculative excess in AI-related tokens continue to stand out. LAB, the native token of LAB Terminal—a browser-based trading execution platform focused on AI-driven routing and reduced slippage—has surged sharply despite broader market weakness.
LAB is up 57% over the past week, 92% this month, and has posted explosive gains of 900% in May, 250% in April, and 78% in March, even as Bitcoin has swung between $68,000 and $63,000.
However, the rally has drawn scrutiny. Blockchain investigator ZachXBT claimed insiders may control up to 95% of the token supply and alleged multiple tactics used to attract retail participation, including high-interest OTC loans with promotional terms, unilateral vesting changes, delayed rewards, and undisclosed market-making arrangements.
As the saying goes, not everything that rises sharply is built on solid ground.
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