• Cryptocurrencies are heading for a sixth straight day of losses, with Bitcoin falling 2% to $62,292 and Ether dropping 5.8% to $1,669.
  • The sell-off is driven by Middle East tensions, expectations of higher U.S. rates, and sustained ETF outflows, with Strategy reportedly selling bitcoin for the first time since 2022.
  • Solana also declined 4.1% to $66.20, with major altcoins near multi-month or multi-year lows as risk-off sentiment dominates.

Risk-Off Mood Sweeps Crypto

The crypto market is extending its decline amid a confluence of macro and geopolitical headwinds. Bitcoin slipped 2% to $62,292, while Ether tumbled 5.8% to $1,669, both hovering near multi-month lows. Solana fell 4.1% to $66.20, close to a multi-year trough. The sell-off, now in its sixth day, has erased billions in market value.

Investors are fleeing risk assets as tensions in the Middle East escalate and expectations of higher U.S. interest rates firm. According to data from CoinShares, crypto investment products saw outflows of $1.2 billion last week, the largest in months, with Bitcoin ETFs bearing the brunt. “The market is pricing in a prolonged period of tight monetary policy, which is crushing demand for speculative assets,” said a trader at a major digital asset fund.

Adding to the pressure, Strategy—formerly MicroStrategy—reportedly sold a portion of its bitcoin holdings for the first time since 2022, according to people familiar with the matter. The company, which holds over 200,000 BTC, did not respond to requests for comment. The sale, though small relative to its total holdings, has been interpreted as a bearish signal by market participants.

Geopolitical and Macro Factors Weigh

The sell-off is not isolated to crypto. Global equity markets have also declined, with the S&P 500 down 1.5% this week. However, the digital asset sector has been hit particularly hard due to its high beta to macro shocks. “Crypto is often seen as a canary in the coal mine for risk appetite,” noted an analyst at a London-based hedge fund. “Right now, the coal mine is filling with smoke.”

Ether’s decline has been steeper than Bitcoin’s, reflecting additional headwinds from network congestion and regulatory uncertainty around staking. Solana’s drop to $66.20—its lowest since late 2023—comes amid concerns about network stability and declining decentralized finance activity.

Looking ahead, traders are watching for any signs of stabilization. “Without a catalyst—like a dovish Fed pivot or a de-escalation in the Middle East—the path of least resistance is lower,” said the fund manager. “We could see Bitcoin test $60,000 soon.”

Update: This article has been updated to reflect additional selling pressure following Strategy's reported bitcoin sale.