Renewed selling swept through the cryptocurrency market on Tuesday, pushing bitcoin beneath $64,000 and dragging most major altcoins lower. Strategy’s latest disposal added to the pressure, while uncertainty before the next U.S. inflation report discouraged investors from taking additional risk.
Bitcoin was valued at $63,977.56 at 11:37 a.m. UAE time, representing a 2 percent decline over the preceding 24 hours. Despite the daily retreat, the largest cryptocurrency remained 0.43 percent higher over seven days.
The digital asset’s market capitalization stood at approximately $1.28 trillion. Trading activity increased as prices weakened, with bitcoin’s 24-hour volume reaching around $22 billion.
The total cryptocurrency market was worth approximately $2.27 trillion, having decreased 0.47 percent during the previous 24 hours. Market-wide trading volume reached approximately $49.7 billion.
Bitcoin represented 56.43 percent of the cryptocurrency market’s combined value, maintaining its dominant position as losses spread across large and smaller tokens. Stablecoins accounted for another 13.29 percent, with their collective capitalization standing at approximately $302 billion.
The figures showed that Tuesday’s selling was not confined to bitcoin. However, bitcoin’s larger capitalization and market share meant that its decline remained the most important influence on the direction of the overall market.
Strategy sales weigh
Strategy’s latest regulatory disclosure intensified attention on corporate bitcoin sales.
The company sold 1,690 bitcoins between August 3 and August 9, generating $108.6 million at an average price of $64,262 for each coin.
Strategy used the proceeds to repurchase approximately 1.15 million shares of its Stretch preferred stock, according to the official SEC filing. The transaction formed part of the company’s broader effort to manage its mix of bitcoin, common equity, preferred securities and dollar liquidity.
Following the sale, Strategy retained 840,447 bitcoins. Those holdings had been acquired for a combined $63.36 billion, giving the company an average acquisition cost of $75,385 per bitcoin.
The company separately generated $653.1 million through sales of its common stock. It directed $650 million of those proceeds into its U.S. dollar reserve, raising the reserve balance to $4.65 billion as of August 9. The cash is intended to support preferred-stock dividends and interest obligations.
The disposal attracted particular market attention because Strategy has historically been one of the world’s most prominent corporate bitcoin buyers. Its transactions are closely monitored because of the company’s extensive holdings and their potential influence on investor confidence.
Bitcoin subsequently traded near $63,800, its lowest level in almost one week. The movement indicated that the latest disclosure contributed to an already cautious trading environment before the inflation release.
Altcoin losses spread
Losses affected most large alternative cryptocurrencies. Ether declined 2.85 percent to $1,874.20 but remained 0.93 percent above its level seven days earlier. Ethereum’s market capitalization reached $225.86 billion, while its 24-hour trading volume stood at $7.98 billion.
BNB fell 0.84 percent to $598.80 and carried a market value of $79.68 billion. XRP dropped 3.24 percent to $1.0060, extending its seven-day loss to 6.43 percent. XRP’s market capitalization stood at $62.74 billion, accompanied by $1.15 billion in daily volume.
Solana retreated 1.64 percent to $75.799, although it retained a weekly increase of 3.14 percent. Cardano recorded one of the steepest declines among major cryptocurrencies, falling 5.01 percent to $0.1887.
Stellar lost 2.22 percent to trade at $0.16077, while Zcash decreased 3.97 percent to $490.66.
Several large tokens resisted the broader downturn. Dogecoin increased 0.11 percent to $0.070152, TRON advanced 0.54 percent to $0.331687 and Hyperliquid gained 0.85 percent to $55.175. Chainlink rose 2.28 percent to $8.431.
Monero was almost unchanged at $394.805 and maintained a seven-day advance of 9.16 percent, one of the stronger weekly performances among the larger tracked cryptocurrencies.
Bitcoin Cash fell 1.15 percent to $215.28, Litecoin declined 1.03 percent to $45.09 and UNUS SED LEO dropped 1.50 percent to $9.486.
Smaller tokens diverge
Selling also extended through several smaller cryptocurrencies. Shiba Inu lost 4.64 percent to $0.00000451, while Uniswap declined 3.09 percent to $3.9517. NEAR Protocol fell 3.30 percent to $1.6017, Aave decreased 4.22 percent to $88.49 and Ondo retreated 4.56 percent to $0.33850.
Hedera dropped 2.15 percent to $0.06727, Sui lost 1.17 percent to $0.6877 and Avalanche slipped 0.73 percent to $6.49. Polkadot declined 0.72 percent to $0.804, while Bittensor fell 2.31 percent to $199.
A smaller group moved against the broader market direction. Internet Computer surged 5.95 percent to $2.35, Mantle advanced 4.64 percent to $0.4497 and World Liberty Financial gained 3.72 percent to $0.0549. OKB increased 0.91 percent to $94.91.
Gold-backed cryptocurrencies strengthened as conventional gold prices remained elevated. PAX Gold rose 0.29 percent to $4,362, while Tether Gold added 0.20 percent to reach $4,346.90.
Stablecoins continued trading close to their intended values despite the broader volatility. Tether stood at $0.9991, USDC at $1.0009, Dai at $0.99974 and PayPal USD at $1.0011.
Their relative stability helped maintain liquidity across cryptocurrency exchanges as traders reduced exposure to more volatile assets.
Inflation test approaches
Market attention is turning toward the July U.S. Consumer Price Index, scheduled for release on Wednesday, August 12, according to the official BLS calendar.
A stronger-than-anticipated inflation reading could revive expectations that the Federal Reserve will maintain tighter monetary policy or consider another interest-rate increase. Higher borrowing costs and a firmer dollar would probably create additional pressure for bitcoin and other risk-sensitive assets.
Softer inflation could have the opposite effect by weakening the dollar, reducing expectations of restrictive policy and improving investor demand for cryptocurrencies. Under that scenario, bitcoin could receive support for another attempt to recover above $65,000.
Until the report is released, corporate sales, ETF flows and broader risk appetite are likely to remain the main immediate influences on the cryptocurrency market.
Corporate flows diverge
The transaction extended Strategy’s bitcoin sales to a fourth consecutive week. Across that period, the company disposed of 6,916 bitcoins for approximately $429.4 million, showing that the August 3-9 sale was part of a pattern rather than an isolated transaction.
Strategy has continued describing bitcoin as its primary treasury reserve asset, but its June capital framework authorized selective sales to fund dollar reserves, preferred dividends, interest payments and security repurchases.
The shift toward active capital management means traders now monitor the company’s filings for potential supply, even though its remaining holdings continue to exceed those of other publicly traded companies.
Institutional demand had provided support immediately before Tuesday’s decline. U.S. spot bitcoin exchange-traded funds recorded $854 million of net inflows between August 3 and August 7, according to ETF data.
BlackRock’s IBIT attracted $694 million, taking its cumulative inflows to $61.17 billion, while Fidelity’s FBTC added $116 million and reached $10.04 billion. The weekly increase showed that regulated investment products were still drawing capital despite price volatility and Strategy’s sales.
Continued ETF subscriptions may absorb part of the additional bitcoin reaching the market, but weaker flows or renewed withdrawals could remove an important source of overall demand during periods of corporate and retail selling.
Macro policy risks
The macroeconomic backdrop had initially improved after the July employment report showed that U.S. nonfarm payrolls declined by 23,000.
The unemployment rate was little changed at 4.1 percent, while employment weakness reduced expectations that the Federal Reserve would raise interest rates quickly. Bitcoin briefly traded above $65,000 as investors reconsidered the outlook for borrowing costs.
Wednesday’s consumer inflation report could alter those expectations. Persistently strong price growth, particularly after the increase in oil prices, could strengthen the case for restrictive policy.
A softer result would support the argument that the Federal Reserve can avoid another near-term increase in interest rates.
Regulatory uncertainty also returned after the U.S. Senate postponed consideration of the Digital Asset Market Clarity Act until September. Senate Majority Leader John Thune filed a cloture motion for a September 15 vote, which would require 60 senators to advance the legislation.
The House previously approved the digital-asset bill, but the Senate remains divided over ethics provisions, anti-money-laundering protections and rewards offered on stablecoin holdings.
The approaching November elections and limited number of remaining legislative days have raised doubts about final passage during 2026. The delay extends uncertainty over how responsibility for digital-asset markets would be divided between U.S. financial regulators.
From buying to selling
Strategy’s bitcoin policy began as MicroStrategy in August 2020, when it purchased 21,454 bitcoins for $250 million and designated the cryptocurrency its primary treasury reserve asset. By the end of the third quarter, purchases reached 38,250 bitcoins for $425 million, averaging about $11,111 per coin.
The policy permitted additional purchases or sales depending on market conditions and cash requirements.
Institutional access broadened in January 2024 when the Securities and Exchange Commission approved the listing and trading of 11 spot bitcoin exchange-traded products. The group included funds managed by BlackRock, Fidelity, Grayscale, Bitwise and VanEck.
These products provided regulated exposure without requiring investors to purchase or safeguard bitcoin directly, creating another source of demand and making daily fund flows influential.
Strategy added another layer in December 2025 by establishing a $1.44 billion dollar reserve.
The company said it would support preferred-stock dividends and interest payments.
Management intended to maintain enough cash for at least 12 months of those obligations and targeted 24 months or more, subject to market conditions, liquidity requirements and its discretion.
The company expanded that approach in June 2026 through its Digital Credit Capital Framework. The policy authorized $1 billion repurchase programs for preferred securities and common shares while allowing selective bitcoin sales for capital-management purposes.
Strategy reported a $2.55 billion reserve covering 17.4 months of expected dividends and interest. The framework established a minimum equal to 12 months of obligations and allowed bitcoin monetization to strengthen liquidity, make payments or fund repurchases while preserving cryptocurrency exposure.
