DeFi Sector Leads Crypto Losses as Bitcoin Wilts for Fourth Session in a Row

Concerns around Strategy’s STRC preferred stock continue to dominate sentiment across crypto markets.

The largest cryptocurrencies remained under pressure for a fourth consecutive session, with Bitcoin slipping 2.5% over 24 hours to just under $62,400.

The weakness was widespread. The CoinDesk 20 Index (CD20) fell 3.3%, while Ether (ETH), XRP, and Solana (SOL) also moved lower. The CoinDesk Smart Contract Platform Select Capped Index declined 4%, with the CoinDesk 80 and DeFi Select Index also ending the day in the red.

Attention remains firmly fixed on Strategy (MSTR), the Michael Saylor-led Bitcoin treasury firm, particularly its STRC preferred stock, which has become a central driver of sentiment.

Marex analysts said, “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 mining economics are adding further pressure, with Bitcoin trading below its estimated $78,000 production cost for five consecutive months—forcing weaker miners to capitulate and contributing additional potential supply.

Derivatives positioning

Market conditions remain fragile following Wednesday’s more hawkish Federal Reserve meeting. Over the past 24 hours, more than $450 million in leveraged positions were liquidated, with long positions accounting for most of the losses.

Open interest in Bitcoin and Ether futures has stayed relatively stable, but Solana futures OI has climbed above 70 million tokens, nearing its June 5 record of 71.57 million. XRP futures OI is also near its highest level since October, signaling elevated leverage and ongoing volatility risk.

Cumulative volume delta (CVD) across most major tokens is negative on an OI-adjusted basis, except for TRX and LAB. This suggests that aggressive market selling is dominating price action rather than passive buying, a pattern that has persisted since midweek.

Funding rates remain subdued across most assets, reflecting cautious to bearish positioning. ADA, XLM, and BCH funding rates have fallen into the -20% to -30% range.

In the Bitcoin options market, traders continue building put positions, hedging for a potential move toward $52,000 or lower in the coming weeks. One-week 25-delta skew also shows strong demand for downside protection, with puts trading at a clear volatility premium.

Token talk

Speculative momentum in AI-related tokens continues to stand out despite broader market weakness. LAB, the native token of LAB Terminal—a browser-based trading platform focused on AI-driven execution and slippage reduction—has surged sharply.

LAB is up 57% over the past week and 92% this month, following earlier gains of 900% in May, 250% in April, and 78% in March, even as Bitcoin has oscillated between $68,000 and $63,000.

However, the rally has drawn scrutiny. Blockchain investigator ZachXBT alleged that insiders may control up to 95% of the token supply and cited tactics such as high-interest OTC loans with promotional conditions, unilateral vesting extensions, delayed reward distributions, and undisclosed market-making arrangements.

As the saying goes, strong rallies don’t always reflect strong fundamentals.