Bitcoin down 20% since May as Strategy fallout spooks investors | Fortune

Bitcoin is down about 20% since May and fell roughly 5% over the past week, even after a modest rebound, according to CoinGecko data cited by Fortune. Ethereum has posted comparable declines, and total crypto market capitalization dropped 36% in a year to just over $2 trillion. The selloff is linked to weakening confidence in Strategy, a major Bitcoin holder with nearly $51 billion in crypto, about 4% of total supply, based on the company’s figures. Strategy’s stock has nearly halved over the past month to around $85, while STRC, the stock tied to a high monthly dividend, has broken its $100 peg and trades slightly above $75. Bitwise CIO Matt Hougan said investors fear Strategy may sell Bitcoin to raise cash, worsening sentiment. Markets are also reacting to expectations of tighter monetary policy after Federal Reserve Chair Kevin Warsh emphasized inflation control.