Strategy Falls to April Levels After Breaking 200-Day Support

Shares of Strategy (MSTR) tumbled to $326, their lowest since April, after new stock issuance guidance unsettled investors. The company’s after-hours trading saw further declines, amplifying concerns that Michael Saylor’s aggressive Bitcoin strategy is straining shareholder confidence and capital structure.

Market analysts noted MSTR dipped below its 200-day moving average of $340 on Wednesday, breaching a long-watched technical support level. Such breakdowns are widely interpreted by traders as potential momentum shifts, challenging assumptions of stability tied to Bitcoin’s long-term performance.

The sharp drop followed Strategy’s decision to lower restrictions on issuing equity under its ATM program to fund Bitcoin purchases. This reversal contradicted earlier earnings-call assurances that shares would not be sold below 2.5 times net asset value.

Famed short-seller James Chanos, who revealed a large bearish bet against Michael Saylor's MSTR, has already seen gains as the stock weakened. Market technician J.C. Parets added that MSTR’s ratio against BlackRock’s IBIT ETF fell to a five-month low, signaling accelerating pressure.

SEC Chair Says That Few Tokens Qualify as Securities

SEC Chair Paul Atkins said at the Wyoming Blockchain Symposium that only a small number of crypto tokens should be considered securities. He explained that most tokens, by themselves, do not meet securities definitions, and classification depends on how they are packaged and sold. The remarks mark a major shift from former Chair Gary Gensler, who argued most tokens fell under securities law.

Atkins said the SEC will continue building rules under its “Project Crypto” initiative, even as Congress prepares to act. The House passed the Digital Asset Market Clarity Act in July, with the Senate expected to consider its version after recess in early September. Banking Committee leaders suggested bipartisan support is emerging, with as many as 18 Democrats potentially backing the measure.

SoFi to Launch Bitcoin Lightning Network Money Transfers

SoFi Technologies announced it will integrate the Bitcoin Lightning Network and Universal Money Address system for international transfers. The service, powered by infrastructure provider Lightspark, will launch later this year in Mexico before expanding globally. SoFi said the new feature will enable members to send money instantly and at lower costs compared to traditional remittance options.

The platform will convert dollars into Bitcoin, route payments over Lightning, and settle them into local bank accounts in the destination currency. Lightspark’s UMA system lets users send money using simple, email-like addresses, improving accessibility. SoFi said fees and exchange rates will be fully transparent, with service available 24/7 to its 11.7 million members.

Trader Who Made $43M Now Lost $6.2M as Ethereum Dipped

A trader who had grown $125,000 into $43 million in just four months lost $6.2 million after Ether dipped near $4,000. The position was liquidated on decentralized exchange Hyperliquid, leaving only $771,000 in the wallet tracked by blockchain data firm Lookonchain. The collapse highlights the volatility that can quickly erase even massive gains in leveraged markets.

Other whales sold $147 million worth of ETH during the downturn, while some traders used the pullback as a chance to buy millions more. The renowned leverage trader James Wynn also suffered partial liquidation, saying he is now “all-in” with no stablecoins left. Analysts warn that Federal Reserve Chair Jerome Powell’s upcoming policy remarks may determine crypto’s next swing.

Data of the Day

Google Trends data shows searches for “alt season” plunged 55% this week as Bitcoin and altcoins retreated. Interest peaked on Aug. 13, the same day Bitcoin hit $124,128, but quickly fell back as markets cooled. Traders often monitor search spikes for signs of retail hype, though some analysts now question their reliability as an altcoin index indicator.

Dogecoin and XRP gave up most of their mid-August gains, dropping roughly 11% each over the past week. Analysts like Cristian Chifoi said recent search spikes may have been influenced by promotions from major exchanges. Others argue traditional metrics are less relevant as ETFs and corporate treasuries influence crypto market sentiment.

More Breaking News

• Senator Cynthia Lummis said she seeks to pass a bipartisan crypto market structure bill before year-end, backing the House’s Clarity Act as the Senate’s base legislation.
• More than 95% of WazirX creditors approved a new restructuring plan after a $234 million hack, pending Singapore High Court approval for fund recovery.
• Tyler and Cameron Winklevoss donated 188 BTC worth $21 million to Trump’s Digital Freedom Fund PAC, advocating pro-crypto policies and reduced government overreach.
• A New York judge ordered EminiFX founder Eddy Alexandre to repay $228 million after ruling the collapsed trading platform a Ponzi scheme defrauding 25,000 investors.
• Binance launched a Plasma USDT locked product offering daily yield plus a 100 million-XPL airdrop, quickly filling its $250 million subscription cap.
• Lloyds Auctions listed 280 early Bitcoin-related domains from 2010 in a single lot, following April’s record $3 million sale of XBT(dot)com.
• Kraken expanded tokenized xStocks to the Tron network via Backed, enabling fractional equity trading and DeFi integration while maintaining full collateral backing for each token.

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