Bitcoin Plunges 2.7% as Risk-Off Move Hits Crypto Market

Bitcoin's price fell to its lowest point in 21 months, dropping as low as $59,217.5 before recovering slightly to $60,700. This decline dragged down several leading altcoins and crypto stocks with it.

The weakness appears to be linked to a risk-off move in semiconductor and AI stocks, analysts said.

XRP, Solana, Ethereum, and Dogecoin all suffered significant losses, with XRP threatening to fall below $1 for the first time since shortly after President Trump's reelection. Ethereum dropped 3.1% to $1,610, while Solana fell 2.6% to $67.

Julio Moreno, Head of Research at CryptoQuant, noted that Strategy, the world's largest corporate holder of Bitcoin, needs to stop purchasing the digital asset and focus on shoring up cash to alleviate pressure on its flagship preferred stock, Stretch (STRC).