Bitcoin, Ethereum and XRP among other tokens have continued a four-day pullback across the crypto market. The decline follows a brief rally earlier this week after news broke that the US and Iran were nearing a deal, which initially pushed prices higher before the market reversed.
A similar pattern played out when the CLARITY Act passed committee, where an initial rally gave way to a pullback. Experts say the market currently lacks strong institutional buying momentum.
SpaceX Pullback May Be Pulling Capital From Crypto
SpaceX shares hit a high of $225 on Tuesday before falling roughly 24% over the following days. Some traders believe capital may be rotating out of crypto and into the SpaceX dip, though this remains speculative.
Strategy’s Preferred Stock Adds Pressure
Concerns are also building around Strategy and its STRC preferred stock. If the company needs to sell Bitcoin to cover losses tied to STRC, that could add further selling pressure to the broader crypto market.
CLARITY Act Talks Intensify
Bipartisan negotiators have launched a last-minute push to pass the CLARITY Act. While a July 4th signing has already been ruled out due to scheduling constraints, lawmakers are preparing a sprint of meetings next week to finalize details before the August recess. Some analysts say a deal within days of July 4th remains realistic, even if the original date is not achievable.
The market reaction suggests some of the recent sell-off reflects disappointment over the delay, though the actual passage date matters less than the bill passing at all.
Gold and Silver Selloff Adds to Risk-Off Mood
Precious metals fell sharply, with over $1.7 trillion wiped out in the past 24 hours. Gold dropped 4.75% to $4,100, while silver fell 9% to $63. The selloff is linked in part to yen weakness, echoing past episodes when yen carry-trade unwinds rattled broader markets, including crypto.
Bitcoin Miners Under Pressure
Roughly 20% of Bitcoin miners are currently unprofitable. According to JPMorgan, Bitcoin has traded below its estimated production cost for five consecutive months. Public miners sold over 32,000 BTC in the first quarter to fund operations, adding incremental selling pressure. Smaller, private miners face fewer options to raise capital, increasing the likelihood of further Bitcoin sales if prices stay depressed.
