Key Moments
- Bitcoin briefly dropped to the $58,000 area, its lowest intraday level in 21 months, before recovering to $59,770.
- The Short-Term Holder Realized Price Year-on-Year Momentum fell from about -2.4% in mid-March to roughly -24% as of Tuesday, signaling weakening speculative demand.
- Around $500 million in leveraged Bitcoin long positions were liquidated in roughly one hour during a broader risk-off move tied to inflation concerns.
Macro-Driven Sell-Off Pushes Bitcoin Toward $58,000
Bitcoin came under heavy selling pressure on Thursday, briefly falling toward the $58,000 mark as a combination of macroeconomic jitters, waning confidence among short-term investors, and a wave of leveraged liquidations weighed on the crypto market.
The move lower in Bitcoin coincided with a sharp reversal in US equities that wiped out roughly $1 trillion in market value from the S&P 500. During this turbulence, Bitcoin touched $58,000 for the first time in 21 months before later stabilizing above that level.
Short-Term Holder Momentum Shows Deeper Weakness
Onchain analytics from CryptoQuant indicated ongoing deterioration in speculative demand. The firm highlighted that the Short-Term Holder (STH) Realized Price Year-on-Year Momentum has continued to slip further into negative territory.
According to the data, this metric declined from around -2.4% in mid-March to approximately -24% as of Tuesday. This suggests that newer market participants have been entering at substantially lower price points than they did a year earlier.
CryptoQuant added that the current weakness reflects reduced activity and conviction among short-term traders. However, the firm pointed out that the latest reading is still less extreme than levels typically seen during prior bear-market reset phases, when the indicator has historically fallen between -55% and -65%.
“These levels coincided with periods of severe short-term holder cost-basis reset, after which market conditions eventually improved,” CryptoQuant analyst Zizcrypto wrote.
CryptoQuant also noted that Bitcoin’s price could begin to stabilize or recover before this particular metric turns higher. Even so, the firm said it has not yet observed clear signs of a lasting rebound in sentiment or conviction among short-term holders.
Inflation Concerns Hit Equities and Crypto Alike
The fragile onchain picture unfolded alongside a steep downturn in traditional markets. The Kobeissi Letter linked the broad sell-off to renewed worries about inflation and increasing costs tied to artificial intelligence infrastructure.
Initially, investors appeared to look past US Personal Consumption Expenditures (PCE) data that showed inflation accelerating to 4.1% in May, the highest reading since April 2023. This calm proved short-lived, as equities then dropped sharply. Apple shares fell nearly 6% after the company announced higher prices for its products.
The broader risk-off sentiment quickly spilled over into digital assets. Roughly $500 million in leveraged Bitcoin long positions were liquidated within about an hour, intensifying the downward move and helping drive Bitcoin toward the $58,000 level.
STRC Weakness Clouds Strategy’s Bitcoin Accumulation Plans
Separate from macro and onchain pressures, Arkham Intelligence pointed to mounting concerns around Strategy’s STRC perpetual preferred shares as another source of uncertainty for Bitcoin market participants.
Arkham observed that STRC has traded about 25% below its $100 par value, a discount it said reflects investor doubts about Strategy’s capacity to maintain its $1.2 billion in annual dividend payments rather than signaling an immediate failure of the instrument.
The firm emphasized that, unlike Terra’s algorithmic stablecoin model, STRC does not feature any forced liquidation mechanism or mandatory dividend obligation that could set off a rapid downward spiral.
Even so, Arkham cautioned that a prolonged slump in the preferred shares could complicate Strategy’s ability to raise new capital. If this persists and investor demand continues to weaken, the firm warned that Strategy’s long-term pace of Bitcoin accumulation could slow.
Current Bitcoin Market Snapshot
At the time of writing, Bitcoin is trading at $59,770, down nearly 2% over the past 24 hours.
Key Data Points
| Metric / Event | Value / Description |
|---|---|
| Intraday low level approached by Bitcoin | $58,000 (brief move, lowest in 21 months) |
| Current Bitcoin price (time of writing) | $59,770 |
| 24-hour price change | Down nearly 2% |
| S&P 500 market cap decline | Approximately $1 trillion |
| STH Realized Price YoY Momentum in mid-March | About -2.4% |
| STH Realized Price YoY Momentum as of Tuesday | Approximately -24% |
| Typical bear-market reset range for STH metric | -55% to -65% |
| Inflation (PCE) in May | 4.1% (highest since April 2023) |
| Apple share move after price hikes | Nearly -6% |
| Leveraged Bitcoin long liquidations | Approximately $500 million in about an hour |
| STRC price vs par | Roughly 25% below $100 par value |
| Annual dividend commitment linked to STRC | $1.2 billion |
Related Coverage
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- Crypto market sheds over 50% of its value amid Bitcoin’s brief decline below $60K
- Bitcoin Price Forecast: BTC nears make-or-break level ahead of US PCE data
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