Morning Minute: Crypto Crashes, New Lows In Sight

Bitcoin and major cryptocurrencies experienced sharp declines on Wednesday, with Bitcoin dropping 6% to $62,600 and Ethereum falling 6% to $1,750. Solana and Hyperliquid also declined by 9%, while altcoins like HYPE, ZEC, NEAR, and VVV saw losses of 10-20% after recent price surges. HYPE had peaked at $75 before the selloff, while NEAR and ZEC fell 18% and 12%, respectively. Arthur Hayes, co-founder of BitMEX, announced he sold his entire HYPE and NEAR positions, attributing the move to a predicted macroeconomic top between now and September. He cited rising energy prices due to geopolitical tensions, upcoming AI IPOs, and a potential anti-AI stance from Donald Trump as key factors influencing his decision. Bitcoin’s decline was further pressured by 11 consecutive days of ETF outflows totaling $1.4 billion this week. Strategy’s STRC preferred stock, trading below $95, faced liquidity challenges after selling Bitcoin for the first time in four years to fund dividends. Meanwhile, Bitmine filed for a $300 million preferred stock raise, modeled after Michael Saylor’s Strategy playbook. The offering includes 3 million shares of Series A Perpetual Preferred Stock at $100 per share, with a 9.5% annual dividend. Bitmine holds 5.42 million ETH, generating $300 million annually in staking revenue, which covers dividend obligations without selling assets. However, its ETH holdings are currently valued at an estimated $9 billion in losses due to the drop in Ethereum’s price below $1,828. MoonPay also introduced MoonAgents, a service allowing AI agents to trade cryptocurrencies on users’ behalf, connecting crypto infrastructure to automated trading systems.