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Why Are Crypto Asset Markets Falling Today?

Crypto asset markets dropped 1.6% in the last 24 hours, losing around US$38.42 billion amid MicroStrategy's first Bitcoin sale in several years, which kept sentiment under pressure. The total market capitalization briefly touched US$2.38 trillion.

Bitcoin
BTCUSD
fell to US$70,914, while Stellar
XLMUSD
led the decline with nearly an 11% plunge after a month-long rally started losing momentum.

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Crypto Market Capitalization Drops as MicroStrategy Sale Pressures Sentiment

Total crypto market capitalization is around US$2.40 trillion, down 1.6% after briefly touching US$2.38 trillion. This selling pressure originated from MicroStrategy's actions, as the market continues to digest the company's first Bitcoin sale since 2022. This move challenges the narrative that the largest corporate holders never sell. Now, these structural buyers are actually becoming symbolic sellers, prompting traders to take risks across various assets.

However, in recent hours, the selling pressure triggered by MicroStrategy's sudden move seems to have impacted BTC more than other major cryptos. ETH, HYPE, and ZEC are already showing bullish signs, which might help keep the TOTAL ticker's movement stable.

Overall, the market structure remains intact. Compared to the late March swing low of US$2.23 trillion, the market is still in an uptrend. An important level to watch is US$2.38 trillion.

Closing below this level would weaken the potential rally, and a drop below US$2.38 trillion could open the way to US$2.23 trillion. If US$2.38 trillion holds, the market could rise toward US$2.49 trillion. Breaking through that level could open opportunities toward US$2.62 trillion or even US$2.68 trillion.

Bitcoin Price Tests Support Channel as Selling Volume Rises

Bitcoin is trading around US$70,914, down for the day, as MicroStrategy's sale directly impacted BTC, since Bitcoin was the asset sold. The surge in selling volume accompanied this decline, weakening the potential for the price to form a floor. The upward channel that BTC has been following since late February remains intact. However, increasing selling pressure is gradually testing the lower boundary of this channel.

A key level is at US$68,725, aligned with the channel's lower boundary, so a roughly 3% decline must be avoided by bulls. If a breakdown occurs here, the price risks falling to US$64,891. Selling volume is a primary concern, as continued pressure could open the door for the price to break below the channel's floor.

A daily close above US$71,735 and then US$73,849 could restore some strength. Conversely, a close below US$68,725 opens the potential for a drop to US$64,891.

Stellar
XLMUSD
Falls 11% as Low-Volume Rally Weakens

Stellar
XLMUSD
is trading around US$0.23, dropping nearly 11% in a day, marking the sharpest decline among other major cryptos. This token actually rose about 113% from late May to nearly US$0.29 on May 30, but the rally lacked volume support, leading sellers to enter as momentum waned.

Risk-off movement triggered by MicroStrategy's sale gave sellers an opportunity to press down on prices, increasing exhaustion in XLM.

The current movement is consolidating in a pattern similar to a flag near the invalidation level. If it drops below US$0.22, this pattern is invalidated. Afterward, there is a risk of a correction of about 50% of the recent gains that XLM has held over the past month. However, selling volume has also started to decline since May 30, despite the price decreasing.

This suggests that the decline may just be profit-taking rather than a full reversal. If the price rises above US$0.25 and then US$0.28, it signals renewed strength.

The range between US$0.22 and US$0.25 will determine whether there is a new upward move or a deeper decline toward the lows.