$150 billion in market cap is gone. Deeper correction ahead ?
U.S. inflation and new U.S.-Iran tension sent shockwaves, wiping $150 billion in crypto market cap and pushing the Altcoin Season Index to a 10-month low. Bearish sentiment on social media hit its highest point in a month. Meanwhile, Strategy’s STRC is increasingly viewed as a major factor to support the Bitcoin rally, but its impact could actually be overstated
Crypto sentiment turns bearish amid inflation and U.S.-Iran conflict fears
The crypto market lost around $150 billion in market cap within days as last week’s U.S. inflation data fueled rising expectations of a Fed rate hike later this year. Markets also turned more cautious after President Donald Trump again hinted at a possible escalation of the U.S.-Iran conflict. Amid this, the Altcoin Season Index fell to a 10-month low, while ICP, BONK, and TAO briefly registered over 15% weekly drops.
Meanwhile, Santiment data showed that crypto narratives on social media turned mostly bearish for the first time in a month. Historically, crypto prices tend to move against crowd expectations, which could support short-term recoveries. Still, the sell-side remains thin, and the buy-side just got thinner, suggesting crypto may face higher volatility in the short term.
Other Top News
● Iran reportedly launched a digital insurance platform for cargo shipments transiting the Strait of Hormuz, with payments settled in Bitcoin.
● HYPE price rose over 15% in a week as Hyperliquid’s pre-IPO perpetual futures markets gained traction ahead of major tech listings.
● Pump․fun plans to introduce a USDC pair for newly issued tokens, which could negatively affect demand on Solana’s native token for memecoin trading.
Could Strategy’s STRC alone drive a potential Bitcoin price rally ?
Michael Saylor’s Strategy (MSTR) has a product called Stretch (STRC), which offers an 11.5% yield powered by its Bitcoin treasury. In recent months, it became the main driver of Strategy’s Bitcoin purchases, and last week it nearly fully funded the company’s $2 billion BTC buy. This fueled the narrative that STRC alone could offset ETF outflows and support a Bitcoin rally.
However, STRC’s impact on Bitcoin’s price appears overstated. For instance, in late January and early February, MSTR’s Bitcoin purchases exceeded ETF outflows, yet Bitcoin’s price still declined (red rectangle). A similar situation happened again last week amid $1 billion in ETF outflows. So while STRC-related purchases may support bullish momentum, they are still far away from being a major factor in broader accumulation dynamics.
