Bitcoin fell to its lowest point in 21 months, dragging down altcoins and crypto stocks amid a risk-off move in tech stocks. On Wednesday, BTC dropped to $59,2175 before recovering to $60,700, down 2.7% in 24 hours. Ethereum, XRP, Solana, and Dogecoin also declined. XRP threatened to dip below $1 for the first time since Trump's reelection. Analysts attribute the sell-off to weakness in AI and semiconductor stocks, as well as expectations of tighter Fed policy following hawkish remarks. The upcoming PCE inflation data may further impact sentiment. Crypto stocks like Strategy (formerly MicroStrategy) and Coinbase also fell sharply, with Strategy's preferred stock hitting new lows. Some traders have reduced activity, anticipating continued consolidation under equity market pressure.

Key facts

• Bitcoin dropped to a 21-month low of $59,2175 before recovering slightly.
• XRP risks falling below $1 for the first time since Trump's reelection.
• Sell-off linked to risk-off move in AI and semiconductor stocks.
• Crypto stocks like Strategy and Coinbase fell sharply, with Strategy's preferred stock hitting new lows.
• Traders reduce activity amid expectations of tighter Fed policy and upcoming PCE data.

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