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Ether, solana and dogecoin slide as Strategy's bitcoin sales plan pressures market
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- DeepHorus
Ether, solana, and dogecoin slid on Tuesday as a surging dollar and the prospect of over $1 billion in potential bitcoin sales by Strategy kept crypto markets under pressure. Bitcoin traded around $59,514, down 0.3% over 24 hours and 7% on the week, holding below its 200-week moving average. The broader market suffered steep losses, with Ether falling 8.2% to $1,587, dogecoin dropping 11.9%, and XRP losing 7.1% over seven days. Only solana and Hyperliquid's HYPE bucked the trend, with solana up 2.9% on the week.
The immediate driver of the sell-off was currency markets, as the Japanese yen slipped past 162 per dollar, its weakest since 1986. This strengthened the U.S. dollar, making dollar-priced assets like bitcoin costlier for foreign buyers and drawing money out of risk trades. The dollar's rise has pinned crypto for weeks, with bitcoin unable to break above $60,000. Onchain data from Glassnode showed muted demand, with active addresses around 618,000 and transaction values near the bottom of their range. Total transaction fees continued to contract, indicating little competition for block space despite lower prices.
Adding to the caution, Strategy, the largest corporate holder of bitcoin, announced Monday that it may sell over $1 billion worth of the token under a new program to shore up its finances. This marks a reversal of founder Michael Saylor's long-standing refusal to sell. The prospect of such a large sale overhangs an already thin market, where liquidity is low and fresh demand is scarce. The news contributed to the week's losses, though the full impact may take time to materialize.
Analysts noted that the crypto market lacks a clear catalyst for recovery. The dollar's strength and the yen's weakness remain key factors to watch. Some warn that if the yen continues to slide, Japan may intervene, potentially unwinding the cheap-yen borrowing used to fund risk trades globally. Such a move could further pressure cryptocurrencies. Meanwhile, onchain activity remains subdued, with no signs of accumulation by long-term holders or institutional buying.
The next tests for crypto are whether the dollar's climb stalls and whether the yen stabilizes. Without a significant shift in macroeconomic conditions or a surge in demand, prices are likely to remain range-bound. Strategy's potential sales add an element of uncertainty, especially if the firm executes large tranches. For now, with onchain activity quiet and a large seller waiting in the wings, crypto has little to lift it from its current lows.
