The decline in Bitcoin that began over the weekend continues into the new week. The leading cryptocurrency, Bitcoin (BTC), has fallen to its lowest level in 10 months amid a general sell-off in the market.
As the price fell below $75,000, its lowest level since April of last year, selling pressure is rapidly increasing in global markets, including commodities and other cryptocurrencies.
With the total value of the cryptocurrency market falling to $2.5 trillion, the situation is also very bad for altcoins.
Ethereum (ETH) fell to $2,200, BNB to $730, and XRP to $1.50.
According to data shared by Kobeissi Letter, significant volatility is also seen in the commodities market; natural gas fell by 15.5%, silver by 8.0%, and gold by 5.5%, while the US stock futures market showed weakness with the Nasdaq, S&P 500, and Dow indices falling by 1.5%, 1.2%, and 0.8%, respectively.
While there is no clear reason behind these declines, experts point to several factors as contributing, particularly the tensions and uncertainty between Iran and the US, the release of new sections of the “Epstein files” by the US Justice Department over the weekend, and Trump’s nomination of Kevin Warsh, known for his tight monetary policy, to head the Fed.
Strategy Turns Red in Bitcoin!
This decline deeply affected the entire market and investors, and even the largest institutional bull strategy ended up in a loss position.
According to Lookonchain’s report, with the Bitcoin price falling below Strategy’s (MSTR) average purchase price of $76,000, the company’s BTC holdings are currently in an unrealized loss state.
Because the company holds 712,647 BTC at an average purchase price of $76,037. When the BTC price dropped to $74,604 overnight, Strategy faced an unrealized loss of over $900 million.
According to CoinMarketCap data, BTC is currently trading at $76,230, which is slightly above Strategy’s average entry price.
*This is not investment advice.
