The Crypto Market Is Falling, Approaching a Final Sell-off

Market Overview

The cryptocurrency market has experienced a significant downturn, losing 5% in the last 24 hours, bringing the total market capitalization down to $2.32 trillion. This decline marks the lowest levels seen since late March, continuing a downward trend that began in mid-May.

Despite the overall market decline, the Nasdaq 100 has reached new highs, indicating a divergence in capital interest between equity and cryptocurrency markets.

Bitcoin's Performance

Bitcoin has fallen below the critical support level of $65.5K, revisiting support levels last seen in February and March. The Relative Strength Index (RSI) has dropped to 22, suggesting a potential increase in volatility as traders may begin to hunt for stop-loss orders on long positions.

Market Sentiment

The Crypto Fear and Greed Index has plummeted to 11, indicating extreme fear in the market. This sentiment shift aligns with the bear market pattern, where the index previously hovered around 50 before the recent price declines.

Key Market Movements

Among the top cryptocurrencies, Zcash (+12%), Internet Computer (+9%), and NEAR Protocol (+8.6%) were the biggest gainers, while Bitcoin Cash (-11.5%), Aptos (-7%), and IOTA (-6.4%) faced the largest losses.

ETF Outflows and Institutional Activity

Outflows from US Bitcoin ETFs have continued for 11 consecutive trading sessions, with investors withdrawing $3.45 billion, significantly more than the total outflows for May. This trend indicates a lack of confidence among institutional investors.

In contrast, US investment firm Strive has purchased an additional 2,500 bitcoins, bringing its total holdings to 19,000 BTC, positioning it as one of the largest public holders of Bitcoin.

MtGox Activity

In a notable development, the bankrupt crypto exchange MtGox has moved 10,423 bitcoins to a new address, marking its first major transaction since November 2025. This movement could signal potential sell-off activity, adding to market concerns.