Crypto Crash Today: Why Bitcoin, Ethereum, XRP, and Solana Are All Down Double Digits

The cryptocurrency market cap plummeted from $2.53 trillion last Wednesday to $2.25 trillion as of this morning, with Bitcoin dropping to $61,500 before rebounding to $63,436. Major coins including Bitcoin, Ethereum, XRP, and Solana all experienced double-digit declines, with Bitcoin down 22.3% on the month and trading over 50% below its $126,000 all-time high. Ethereum fell 25.8% to $1,768, XRP hit a 15-week low at $1.17 (down 17.3% monthly), and Solana took the hardest hit, losing 20.9% over the past month to $68.38. The market downturn was exacerbated by $1.76 billion in liquidated leveraged positions within 24 hours, with $1.50 billion of that from long positions. Bitcoin absorbed $773 million of the losses, followed by Ethereum ($482 million) and Solana ($88 million). Traders heavily exposed to long positions faced severe losses as the market corrected. A key catalyst for the sell-off was Strategy’s first Bitcoin sale in nearly four years, which sent shockwaves through the market. The company, formerly known as MicroStrategy, sold 32 Bitcoin between May 26 and May 31 for $2.5 million at an average price of $77,135. While the sale represented only 0.004% of its holdings, the move broke Strategy’s long-standing narrative of never selling Bitcoin. The company had previously announced plans to fund distributions on its perpetual preferred stock (STRC) with the proceeds. U.S. spot Bitcoin ETFs also contributed to the downturn, experiencing their longest outflow streak ever, while fresh U.S. strikes on Iran added geopolitical uncertainty. The fragile ceasefire in place since April was rattled, further destabilizing investor sentiment. Despite Strategy’s pre-announcement of the Bitcoin sale, the market reacted sharply, with MicroStrategy’s stock (MSTR) suffering further losses. The combined impact of institutional selling, leveraged liquidations, and geopolitical tensions created a perfect storm for the crypto market. High-beta altcoins like Solana and XRP amplified the downturn, falling steeper than Bitcoin. The correction underscores the market’s sensitivity to both macroeconomic factors and shifts in institutional behavior.