Crypto investors endured one of their toughest week in years as a wave of selling wiped out hundreds of billions of dollars from digital asset markets.

Bitcoin BTC$60,583.08 fell 17.3% this week while ether (ETH) dropped 22%, putting both assets on track for their largest weekly declines since November 2022, when the collapse of Sam Bankman-Fried’s FTX exchange triggered a market-wide panic.

Despite a modest stabilization on Saturday, both assets remained near their lows, with BTC trading just above $60,000 and ETH changing hands around $1,550.

The damage extended far beyond the two largest cryptocurrencies. The digital asset market shed roughly $390 billion in value during the week, leaving total market capitalization hovering just above $2 trillion, according to TradingView data. That’s less than half of the nearly $4.2 trillion peak reached in October.

It wasn’t just prices that got hit. Crypto derivatives traders suffered one of the largest wipeouts of this year.

Roughly $7 billion in leveraged positions were liquidated across digital assets during the week, according to CoinGlass data, with Monday and Friday delivering the most severe flushes.

About $5.7 billion of those were long positions, or bullish bets on higher prices.

Why crypto crashed this week

The selloff came as several bearish forces converged at once.

Starting the week, Strategy (MSTR), the largest corporate holder of bitcoin, disclosed it sold BTC for the first time in nearly four years. The transaction was negligible — just 32 BTC worth roughly $2.5 million — but the sale rattled investors who had long viewed Michael Saylor’s company as a perpetual source of demand.

Investors also began questioning whether Strategy may need to sell additional bitcoin to help cover obligations tied to its growing stack of preferred equities.

At the same time, bitcoin ETFs continued to bleed assets. K33 Research head Vetle Lunde argued earlier this week that some of those outflows reflected a broader rotation of capital away from crypto and into artificial intelligence (AI) investments.

With AI-related stocks pushing to record highs and investors anticipating potential IPOs from companies such as OpenAI, Anthropic and SpaceX, “the opportunity cost of holding BTC” has become increasingly difficult for some investors to ignore, Lunde said.

Concerns about AI’s ability to expose flaws in crypto protocols also added to the pressure. Zcash (ZEC), one of the best-performing cryptos earlier this year, tumbled more than 40% after researchers used Anthropic’s latest AI model to uncover a critical vulnerability in the network’s privacy system.

The final blow came with Friday’s stronger-than-expected U.S. jobs report, forcing investors to rethink the Federal Reserve’s next move. Markets that earlier this year anticipated rate cuts are now increasingly expect that the central bank could hike if inflation remains stubbornly high.

U.S. Treasury bond yields surged, while the Nasdaq 100 suffered its worst day since the tariff-driven selloff in April 2025, snapping a record-setting rally that had fueled much of Wall Street’s enthusiasm this year.

For now, the selling appeared to have paused with traditional markets closed for the weekend and crypto prices stabilizing on Saturday.

Whether this week’s rout marked the capitulation that often comes at market bottoms or was merely the latest episode in the downtrend may come down to the broader macro picture. Higher bond yields, rate-hike fears and continued competition from AI investments and IPOs remain key hurdles for the recovery.

TLDR:

• Solana RSI oversold signal falls below 2022 FTX-era lows as momentum weakens across charts
• SOL drops nearly 80% from highs, printing eight consecutive red monthly candles in trend
• URPD shows heavy supply concentration between $76 and $83, forming a strong resistance zone
• Key support zones emerge at $53, $35, and $24 as liquidity thins below current price levels

Solana RSI oversold signal has caught market attention as Solana extends its steep correction from recent highs. Market momentum has weakened across multiple timeframes.

Meanwhile, traders are comparing it to the historical FTX-era crash that led to high on-chain distribution and liquidity conditions across markets.

Momentum Breakdown Mirrors FTX-Era Stress Levels

The Solana RSI oversold signal reflects extreme downside momentum across monthly charts and broader crypto market structure. Current readings show a weakening market structure across long-term timeframes today.

Price action confirms sustained selling as Solana extends its longest red monthly streak in recorded market history.

Market participants track momentum divergence as RSI drops below levels seen during the 2022 FTX crash period.

This reading signals stronger bearish pressure than the FTX crash phase recorded earlier in previous market cycles now.

Derivatives traders reduced exposure as volatility expanded across spot and futures markets under sustained liquidation pressure.

Analysts observe eight consecutive red monthly candles that confirm persistent distribution behavior across extended correction phases in market cycles.

The Solana RSI oversold signal aligns with weakening liquidity conditions across exchanges and broader trading environments today globally.

URPD Structure Maps Key Liquidity Zones

URPD data maps strong accumulation clusters between $76 and $83 across historical Solana holder cost basis zones.

These zones act as resistance as price trades below prior holder cost bases during the ongoing market correction phase.

Sellers reappeared near breakeven levels and reinforced pressure around key supply pockets during recovery attempts in market conditions.

Below current levels, URPD shows thinner liquidity until the $53 support zone becomes active in market structure now.

Market structure weakens further if selling pressure pushes toward mid-range clusters across lower liquidity zones, forming ongoing pressure.

Traders monitor these zones closely to identify potential reversal or continuation signals in volatile conditions across markets.

Analysts’ Crypto Patel reports show accumulation activity between $70 and $50 during extended correction phases in spot markets.

Long-term holders position for recovery targets extending toward higher valuation zones across multi-year outlook frameworks in market conditions.

Market participants are watching liquidity pockets at $35 and $24 for deeper support during ongoing analysis of extended drawdown phases.

TLDR:

• Glassnode data shows Bitcoin long-term holders shifting from distribution to re-accumulation phase
• Bitcoin tests $60K support while RSI nears 15, signaling oversold momentum conditions now
• Price structure shows lower highs and potential double-bottom forming near key support zone
• Reduced liquid supply from long-term holders may strengthen price response if demand remains stable

Bitcoin is experiencing a notable shift in long-term supply behavior alongside a critical technical test in price structure.

Glassnode’s Old Supply Net Position Change metric has moved back into positive territory after nearly two years of sustained distribution.

Bitcoin held for more than six months is now being accumulated rather than spent. This change coincides with broader adjustments in spot and derivatives market activity.

Long-term Holders Return to Accumulation after Extended Distribution Phase

Glassnode data previously showed prolonged negative readings as long-term holders reduced exposure during price rallies.

These distribution phases aligned with the 2024 and 2025 uptrends when veteran investors realized profits at elevated levels.

This selling increased circulating supply and supported absorption from institutional and retail demand. On-chain data suggests this phase marked consistent profit realization during upward price movements.

The current transition shows the indicator crossing above zero after an extended negative period. Data indicates that dormant coins beyond six months are no longer actively spent.

Instead, inactive Bitcoins are rising as holders keep coins off exchanges. Exchange flow data reinforces the view that supply was actively redistributed during the earlier phase.

Market participants now interpret the change as a shift in holder psychology toward longer holding periods. Even near elevated price levels, long-term investors appear less willing to liquidate positions for profit.

This behavior reflects expectations of continued market strength or higher future valuation. The absence of aggressive selling supports strengthening conviction among holders.

Bitcoin tests key $60,000 support as RSI signals extreme oversold conditions

Bitcoin trades near a critical support zone between $60,000 and $61,000 during the ongoing corrective phase. The level has repeatedly acted as a structural floor throughout the current market cycle.

Price action continues to show lower highs and lower lows since the cycle peak. Market volatility has compressed around this level as buyers and sellers contest direction.

Technical indicators show RSI near 15, indicating deeply oversold market conditions. Historically, such readings have coincided with selling exhaustion and potential relief rebounds.

Market participants note that weak hands typically exit positions during these momentum extremes. Such technical alignment often attracts attention from traders seeking short-term reversal opportunities.

The $60,000 level represents both psychological and technical support for Bitcoin. A sustained hold could shift market structure toward accumulation and potential recovery.

Price action over the next sessions may determine whether consolidation or recovery develops. A breakdown below this zone would expose the market to deeper downside pressure.

TLDR:

• BitMEX Research disputes claims of $64B spent vs $50B BTC value, calling it an incomplete accounting view
• Strategy raised capital via premium stock issuance, boosting shareholder value beyond Bitcoin price
• Michael Saylor Bitcoin Strategy spans multiple cycles, combining cash, debt, and equity funding
• Debate centers on valuation method, not BTC holdings, amid volatile crypto market conditions

Michael Saylor’s Bitcoin Strategy has returned to the spotlight after Arkam data suggests that Strategy spent nearly $64 billion acquiring Bitcoin, which is now worth considerably less.

However, new analysis argues the narrative overlooks how the company generated shareholder value while building one of the largest corporate Bitcoin positions in history.

BitMEX Research Pushes Back Against $14 Billion Loss Claims

The latest debate emerged after data circulated online suggesting that Michael Saylor’s company spent roughly $64 billion to accumulate Bitcoin, which is currently valued at near $50 billion. Critics quickly framed the difference as evidence of a multibillion-dollar paper loss.

Some observers questioned whether Strategy’s aggressive accumulation model had exposed shareholders to excessive risk.

The discussion focused primarily on Bitcoin’s current market value compared to the total capital deployed over several years.

However, BitMEX Research challenged that conclusion. In a public response, the research firm argued that measuring Strategy’s performance solely through Bitcoin’s market value presents an incomplete picture.

According to the firm, Michael Saylor generated substantial shareholder value by issuing stock at significant premiums while demand for Strategy shares remained elevated.

BitMEX Research noted that although Bitcoin’s price may have declined from certain purchase levels, the company benefited from investors willingly paying premium valuations for exposure to its Bitcoin-focused corporate structure. As a result, shareholder value creation extended beyond Bitcoin’s spot price performance.

Michael Saylor Bitcoin Strategy Centers on Long-Term Capital Allocation

The Michael Saylor Bitcoin Strategy has never been based on short-term price movements. Since initiating Bitcoin purchases in 2020, Strategy has consistently accumulated the asset through market rallies, corrections, and prolonged downturns.

The company initially deployed cash reserves before expanding acquisitions through convertible notes and equity offerings.

Rather than pausing purchases during volatile periods, Strategy continued increasing its Bitcoin holdings across multiple market cycles.

Saylor has repeatedly described Bitcoin as a superior store of value and a scarce digital asset capable of preserving purchasing power over long periods. Under that framework, temporary drawdowns are viewed differently from traditional investment losses.

Supporters of the strategy argue that the strategy effectively transformed itself into a publicly traded vehicle offering leveraged Bitcoin exposure.

This structure enabled the company to access capital markets while benefiting from strong investor demand for its shares.

Critics remain focused on concentration risk and the company’s dependence on Bitcoin’s future performance. Yet the current debate increasingly revolves around valuation methodology rather than Bitcoin ownership itself.

For now, BitMEX Research maintains that Michael Saylor is assuming the shareholder value created through premium stock issuance.

As Bitcoin continues to fluctuate, the discussion surrounding Strategy’s approach remains one of the most closely watched narratives in corporate finance and digital assets.

TLDR:

• Senator Cynthia Lummis describes the CLARITY Act as the most consequential financial bill today.
• The legislation establishes clear SEC and CFTC oversight rules for digital asset classification.
• Tokens meeting decentralization standards may transition from securities to commodities oversight.
• Senate negotiations continue on stablecoins, DeFi protections, and expanded crypto tax reporting

CLARITY Act advances in the United States Congress as lawmakers shape a digital asset regulatory framework during the 2026 legislative cycle.

Senator Cynthia Lummis describes the CLARITY Act as a defining financial legislation effort in the ongoing Senate discussion.

Lawmakers passed the bill in the House in July 2025 and advanced Senate committee versions in the 2026 stage. Negotiations are still ongoing over stablecoin rules, DeFi treatment, and tax reporting requirements within the Senate framework committees.

Congress advances CLARITY Act with SEC and CFTC division model

Lawmakers advanced the CLARITY Act after the House passed it with bipartisan support in July 2025, final vote. Senate committees reviewed the legislation and approved versions for consolidation into a unified draft process stage in the 2026 cycle.

Senator Cynthia Lummis played a central role in shaping regulatory language and the bipartisan coordination process.

The CLARITY Act establishes a framework that divides SEC and CFTC authority for digital asset classification system rules structure.

Classification depends on decentralization, control, and network structure under federal regulatory criteria applied across the token assessment process framework. Assets that pass the mature blockchain test may shift from SEC oversight to CFTC jurisdiction over time.

Market participants monitor classification outcomes as they affect compliance planning across crypto industries under an evolving regulatory framework.

Industry stakeholders are evaluating how decentralization thresholds may influence long-term token governance structures across blockchain networks review process stage.

Developers and exchanges adjust operations based on regulatory expectations and classification outcomes within the compliance planning cycle framework stage.

Stablecoin rules and exchange oversight in CLARITY Act framework

Senate negotiators are reviewing stablecoin provisions within the CLARITY Act framework during the ongoing legislative discussion stage cycle.

Provisions address restrictions on yield-like rewards and define boundaries for stablecoin financial activity under regulatory framework review process.

Final rules depend on Senate agreement and technical drafting between committees for the final legislative approval process.

The CLARITY Act requires centralized exchanges and intermediaries to register under CFTC oversight framework for compliance enforcement.

Registration introduces customer protection reporting and transparency obligations similar to traditional financial markets within a regulated system framework.

The bill expands tax reporting definitions, requiring more broker disclosures through Form 1099-DA filings to the Internal Revenue Service.

The Blockchain Regulatory Certainty Act provision is meant to protect non-custodial developers within a decentralized protocol framework under specific legal conditions.

It distinguishes decentralized protocols from custodial intermediaries that control user assets directly under regulatory classification rules framework.

Bitcoin is trading amid unusually deep selling pressure, with on-chain momentum and widely watched momentum indicators signaling an extreme oversold state. The daily relative strength index (RSI) has slid toward the mid-teens, marking the most oversold reading since the March 2020 COVID crash. After a roughly 30% drop over the last month, bulls are clinging to the $60,000 level as analysts weigh whether a meaningful relief rally could unfold in the near term.

Key takeaways:

• Bitcoin’s daily RSI sits near 15.5, its lowest level since the COVID-era selloff in March 2020.
• Historical precedents show that similar oversold readings in 2020 and February 2026 preceded notable rebounds of roughly 50% and 30%, respectively.
• BTC has held above $60,000 despite heavy selling, with a potential move toward the 20-day exponential moving average near $70,650 if demand returns.
• A decisive break below $60,000 could open the door to a deeper slide into the mid-$50,000s, undermining the bounce setup.
• On-chain stress signals point to concentrated selling among newer entrants, with around 5.3 million BTC held by short-term holders underwater and long-term holder supply exceeding 15 million BTC.

Oversold RSI sets the stage for a potential relief move

As of the latest session, Bitcoin’s RSI hovered around 15.5, placing it in territory typically associated with short-term exhaustion and potential capitulation relief rallies. The move comes after a sharper-than-average decline that has erased a significant portion of recent gains and revived conversations about whether a bottom is in place.

Market context remains unsettled. Geopolitical tensions, higher oil prices, and fading expectations for a 2026 Federal Reserve rate cut have all contributed to risk-off sentiment. The price action has been framed by sharp, near-term catalysts, including Strategy’s latest Bitcoin sale, which added to selling pressure in some pockets of the market. For readers and traders, that confluence is a reminder that macro headlines can compound oversold dynamics, even if a short-term bounce appears plausible from a technical standpoint. For reference, recent related developments have been covered by Cointelegraph links to geopolitical risk threads and macro commentary.

Historically, severe RSI overshoots have sometimes foreshadowed relief rallies as buyers seek to step in at perceived bargain levels. In the COVID crash era, Bitcoin’s RSI around 15.5 preceded a substantial rebound aided by accommodative policy moves. In one notable episode, the late-stage oversold signal was followed by a rally of roughly 50% in the ensuing months as liquidity and risk appetite rebounded. The comparison matters because it underlines a recurring theme in crypto markets: extreme oversold readings often coincide with late-stage capitulation, creating a setup for a technical bounce if demand returns.

Support under pressure, but the floor at $60k holds for now

Despite relentless selling, Bitcoin has defended the key $60,000 support level. The lack of a decisive breakdown at this level—despite heavy volume—suggests that sellers may be exhausting, opening room for a relief move if buyers re-enter. A bounce toward the 20-day exponential moving average, currently around $70,650, would fit a classic oversold-to-relief pattern, potentially setting the stage for a multi-week recovery should the macro backdrop stabilize.

On the flip side, a confident break below $60,000 would weaken the rebound thesis and could accelerate a test of the mid-$50,000s. That scenario would not only prolong the risk-off phase but could also invite further on-chain stress as capitulation dynamics re-emerge. In that sense, technicians and traders alike are watching not just the price level itself but the accompanying order-flow and volume signals that could confirm or deny the nascent relief rally.

On-chain stress indicators illuminate near-term fragility

From an on-chain perspective, stress signals are pronounced. Checkonchain data highlighted by crypto analyst Scott Melker show that short-term holders are realizing large losses, a dynamic that often accompanies rapid price declines and can cap any immediate bounce. The profit-and-loss (P/L) ratio for short-term holders has dropped to a new all-time low, indicating a higher likelihood of near-term selling pressure as newcomers exit positions at a loss.

“Sentiment has tracked price almost perfectly,” Melker noted, adding that traders were euphoric at the May peak and then faced despair by early June — a pattern that has historically preceded a bottom, though not always in a uniform fashion.

Further tailwinds for the bears come from the long-term holder segment. Roughly 5.3 million BTC held by long-term investors are currently underwater, a figure that climbs past the post-FTX low and sits at the highest since the COVID crash. This concentration of underwater positions among long-term holders signals that a broad portion of the investor base is facing a costly retracement, which historically has spurred a willingness to wait out volatility rather than chase fresh positions at elevated risk.

For broader context, the literature on Bitcoin’s macro cycles remains mixed. The market has seen dramatic drawdowns followed by outsized rebounds in the past. After the FTX collapse, Bitcoin bottomed near $15,500 and later surged more than sixfold to around $126,000 in 2025. The COVID-driven decline earlier in the decade produced an even more dramatic advance, underscoring the potential for outsized moves from deeply oversold conditions, even if the timing and catalysts vary each cycle.

These on-chain signals do not guarantee a bottom or a rapid reversal, but they provide valuable context for traders looking for the next foothold. The combination of an oversold RSI, a stubborn $60,000 floor, and heavy underwater exposure among both short- and long-term holders suggests investors should be prepared for a choppy ride in the near term, with a clear watch on whether demand re-emerges to sustain any upside move.

For readers seeking a broader frame, some market observers have pointed to a pattern of relief rallies following deep oversold readings during periods of macro uncertainty. In February 2026, when the RSI touched a comparable low around 15.86 while price hovered above $60,000, Bitcoin advanced toward roughly $82,850, illustrating that oversold conditions can coincide with substantial, albeit not guaranteed, counter-moves. The present setup bears similarities to that moment, though the current macro complexity adds layers of risk for any potential bounce.

What investors should watch next

Looking ahead, the critical juncture remains at the $60,000 level. A robust defense there would keep alive the case for a relief rally toward the 20-day EMA near $70,650, offering a path to a short-to-medium-term relief trade if macro catalysts stabilize. A decisive break below $60,000 would raise the odds of revisiting the mid-$50,000s, challenging the bulls’ conviction and inviting further on-chain stress as new entrants rethink positions.

Beyond price and RSI, investors should monitor on-chain metrics for signs of exhausted selling and renewed demand. The trajectory of long-term holder supply, the rate of new coin creation and distribution, and the behavior of short-term holders in the wake of renewed liquidity will be telling indicators of whether this oversold episode morphs into a durable bottom or remains a precarious zone of accumulation and risk-off trades.

As always, readers should pair technical and on-chain signals with macro developments and liquidity conditions. The coming weeks will reveal how much of the current price action is driven by structural shifts in demand versus transient headlines, and whether the market can sustain a bid that takes BTC toward higher targets or whether volatility will keep traders in a high-alert posture.

In short, the extreme oversold signal is a meaningful data point to watch for potential near-term upside, but the path forward hinges on whether buyers can absorb selling pressure and push price beyond the defining $60,000 floor with conviction. Until then, traders will likely remain nimble, weighing risk and reward as new information unfolds.

Readers should stay tuned for updates on macro policy expectations, evolving on-chain signals, and potential shifts in liquidity that could alter the balance of power between bears and bulls in the weeks ahead.

Here is a pattern that should not make intuitive sense. Cardano’s ADA token has collapsed to four-year lows below $0.20, down more than 90% from its 2021 peak, in one of the worst stretches the ecosystem has ever faced.

Its founder warned of a coming “wave of failures,” a respected developer firm shut down, the community voted against funding its own flagship conference, and Charles Hoskinson announced he was taking a break. And yet, while the price cratered, Cardano’s social activity did the opposite of what you would expect.

Fresh on-chain activity from Bhutan-linked Bitcoin wallets has added pressure to an already weak crypto market. Several large Bitcoin transfers emerged within a single day, while analysts projected deeper downside risks. Meanwhile, Bitcoin continued trading near critical support levels after recent macroeconomic developments triggered renewed selling pressure.

Bhutan Government-Linked Wallets Move Over $67 Million in Bitcoin

Blockchain tracking data showed multiple Bitcoin transfers from wallets linked to Bhutan on Saturday. The transactions totaled more than 1,095 BTC and exceeded $67 million in value. The transfers attracted attention during a period of heightened market volatility.

The largest transfer involved nearly 365 BTC, valued at approximately $22.26 million. Other notable transactions included 188 BTC and 150 BTC, worth over $20 million combined. Several smaller transfers ranged from 1 BTC to more than 100 BTC.

The cumulative value of the identified transactions surpassed $67 million at current prices. Blockchain records indicated a series of staggered transfers throughout the day, and market participants linked the activity to broader concerns about Bitcoin supply pressure.

Background data from Arkham Intelligence indicated that Bhutan previously reduced substantial Bitcoin holdings. The country accumulated large reserves through state-backed mining operations over recent years, though officials have disputed reports suggesting direct Bitcoin sales.

The latest transfers arrived during a period of uncertainty across digital asset markets. Traders also responded to macroeconomic concerns and shifting risk sentiment, so the transactions received additional attention despite limited official clarification.

Bitcoin remained under pressure following recent weakness across major cryptocurrencies. Selling activity increased after economic data affected expectations for monetary policy, and large wallet movements added another factor influencing market sentiment.

Bitcoin Holds Above $60,000 as Downside Targets Emerge

Bitcoin experienced renewed volatility after falling sharply during recent trading sessions. The asset dropped to nearly $59,100 before recovering above the $61,000 level, but the recovery remained limited as bearish sentiment persisted.

Market analysts pointed to weakening momentum indicators on higher timeframes. Several technical signals suggested that selling pressure remained elevated, and traders focused on whether Bitcoin could maintain support above $60,000.

The daily Relative Strength Index reached levels not seen since previous major market declines. Broader market conditions continued to reflect risk-off behavior among participants, leading analysts to maintain cautious near-term price expectations.

Technical projections identified $55,000 as a major support zone below current levels. Additional support areas appeared between $50,000 and $54,000 if weakness persists, and many forecasts highlighted those levels as possible downside targets.

Prediction markets reflected growing expectations of further price declines, with market probabilities indicating a strong chance of a move toward $55,000. Traders continued evaluating economic conditions and liquidity trends.

Bitcoin remained above the important $60,000 threshold despite recent selling pressure. Nevertheless, another breakdown could expose the asset to lower support zones, keeping market attention centered on whether buyers can defend current levels.

Analysts Project Possible Bitcoin Bottom Near $48,000

Several market analysts outlined scenarios involving deeper Bitcoin corrections during this cycle. Some projections suggested prices could fall below the $50,000 mark, though expectations varied regarding the ultimate bottom for the downturn.

Analyst Ted Pillows rejected forecasts calling for a decline toward $30,000 and instead identified a potential bottom range between $48,000 and $50,000. His outlook aligned with several recent bearish market projections.

Other market commentators also identified sub-$50,000 levels as potential support zones. Their assessments reflected ongoing concerns about weakening market momentum, while uncertainty surrounding global economic conditions continued affecting sentiment.

Recent forecasts from other industry figures similarly pointed to additional downside risk. These projections emerged as Bitcoin struggled to establish a sustained recovery, and market participants continued assessing lower price scenarios.

Despite bearish projections, Bitcoin maintained a position above key support levels and preserved a significant portion of gains recorded over previous years. Continued selling pressure, however, could challenge those supports in coming sessions.

The latest Bhutan-linked Bitcoin transfers coincided with these bearish market forecasts. Traders evaluated broader economic developments and technical signals as Bitcoin entered a critical period, with analysts debating whether support can hold or prices could slide toward the $48,000 region.