For XRP, the slump threatened to push the digital asset under $1 for the first time since shortly after President Donald Trump’s 2024 reelection win. For Dogecoin, the fall earlier Wednesday thrust the first meme coin to its lowest levels since late 2023.
“Days like today are undoubtedly painful,” Juan Leon, senior investment strategist at crypto asset manager Bitwise, told Decrypt. “But step back. We’ve seen this movie before.”
Leon noted that pronounced drawdowns in crypto prices have felt thesis-breaking in the moment, but the technology continues to be adopted as a modern form of market plumbing.
He said that a risk-off move hitting AI and semiconductor stocks was affecting a market for digital assets that’s already depressed, adding, “This bear market shall pass, and crypto will come out stronger on the other side.”
Amid lackluster price action, it appears some traders have grown less engaged, according to a note shared by Jasper De Maere, an OTC trader at crypto trading firm Wintermute.
“Flows are suggesting traders have started going into summer recess,” he wrote. “It’s possible we’ll consolidate at these levels, at the mercy of the equity market which has the potential to pull crypto down alongside it in case of a further risk-off rotation.”
Although a 0.4% decline in the Nasdaq was led by Micron Technology before the firm announced earnings, the chipmaker’s losses were outpaced by crypto-native firms.
Bitcoin treasury giant Strategy plunged 9% to $94.43 after bouncing off a 27-month low of $92.28, a move that intensified scrutiny on its flagship preferred stock, Stretch (STRC), which notched new lows Wednesday following a record drop last Thursday. Coinbase’s stock price fell 5% to $150.11, while Robinhood shares slid 5.8% to $97.21 apiece.
