Daily Crypto Signals: Bitcoin Plunges Below $64K, Strategy Inc. Reports Historic $12 Billion Loss
Bitcoin has fallen 30% this year to around $63,000, dropping below the critical 2021 cycle high of $69,000 as record-high selling pressure
Quick overview
- Bitcoin has dropped 30% this year, currently trading around $63,000, below the critical 2021 high of $69,000.
- MicroStrategy reported a $12.4 billion quarterly loss due to Bitcoin's decline, but executives assert the company remains financially resilient.
- The cryptocurrency market faces regulatory scrutiny as World Liberty Financial is under investigation for a $500 million investment linked to the Trump family.
- Despite bearish trends, technical indicators suggest potential price recovery for Bitcoin, with historical patterns indicating possible gains following similar conditions.
Bitcoin BTC/USD has fallen 30% this year to around $63,000, dropping below the critical 2021 cycle high of $69,000 as record-high selling pressure intensifies and options markets indicate just 6% odds of a return to $90,000 by March. Meanwhile, Strategy reported a massive $12.4 billion quarterly loss driven by Bitcoin’s tumble, though executives maintain the company remains financially resilient despite being down 17.5% on its holdings.
Crypto Market Developments
The cryptocurrency market encountered substantial hurdles today as various obstacles converged to impair investor optimism. Positive news: Polymarket, a decentralized prediction market, has teamed with Circle, a stablecoin issuer, to switch from bridged USDC.e to native USDC settlement on its platform. The move intends to reduce complexity and risk associated with cross-chain bridges while enhancing capital efficiency, mirroring a broader trend toward native stablecoin settlement as onchain markets mature.
But as World Liberty Financial (WLFI), the cryptocurrency business associated with President Donald Trump’s family, is the subject of a House investigation headed by California Representative Ro Khanna regarding a purported $500 million investment by a company associated with Abu Dhabi royal Sheikh Tahnoon bin Zayed Al Nahyan, regulatory scrutiny grew. The probe focuses on issues of openness and public trust, especially since Trump denied knowing about the transaction and claimed his family was taking care of it.
Meanwhile, crypto businesses are reportedly considering compromises to break the deadlock over the stalled crypto market structure bill. The proposal cleared the House but is blocked in the Senate over disputes over whether stablecoin issuers should be permitted to offer yields. Anonymous reports claim crypto businesses are proposing compromises such as providing community banks a stronger role in the stablecoin system and requiring issuers to keep reserves at community banks.
Bitcoin Down 14% to Trade Around $63,000
Bitcoin has seen a spectacular 13% collapse over only four days, plummeting from $79,300 to below $64,000 and breaking through the psychologically critical $69,000 level—the high of the 2021 bull market. The cryptocurrency is currently trading around $63,000, marking its lowest level since November 2024 and represents a 30% decrease from the unsuccessful attempt to break $90,500 in late January. The steep loss was accompanied by a substantial leverage reset, with Bitcoin’s open interest plummeting by more over $10 billion over the past seven days.
Despite the bearish momentum, technical analysts point to multiple indicators suggesting downside pressure may be peaking. The $58,000 to $69,000 range is a significant demand zone supported by heavy transaction activity and alignment with the 200-week moving average near $58,000. Bitcoin’s weekly relative strength index (RSI) has fallen below 30 for only the fourth time in its history, with previous instances leading to an average 16% rise over the next four days. Additionally, the adjusted net unrealized profit/loss (aNUPL) has turned negative for the first time since 2023, meaning the average holder is currently at a loss—conditions that historically followed price recoveries in 2018-2019, 2020, and 2022-2023.
MicroStrategy Reports $12.4B Loss Amid Bitcoin’s Drop
Strategy, the largest publicly listed business with onchain Bitcoin reserves, posted a startling net loss of $12.4 billion in the fourth quarter of 2025, caused by Bitcoin’s 22% fall over the quarter. The company’s 713,502 Bitcoin assets, acquired at an average cost of $76,052 per coin, are currently down 17.5% as Bitcoin trades below $64,000. Strategy’s enterprise value recently plummeted to $53.3 billion while its Bitcoin cost base stood at $54.2 billion, increasing fears among investors about potential forced liquidations if the bear market persists.
Despite the large quarterly loss and shares closing 17% lower on Thursday at $107, Strategy management have confidence in the company’s financial position. CEO Phong Le assured investors on an earnings call that there’s no reason to fear, claiming “I’m not worried, we’re not worried, and no, we’re not having issues.” Chief Financial Officer Andrew Kang stressed that the company’s capital structure remained “stronger and more resilient today than ever before,” noting that Strategy expanded its cash holdings to $2.25 billion in Q4, representing 30 months of dividend payouts.
Critically, the company has no large debt maturing until 2027, meaning it faces no imminent pressure to liquidate Bitcoin assets to pay obligations. Le further pointed out that Strategy’s $8.2 billion of convertible debt is just approximately 13% net leverage, below most S&P 500 companies, and that the enterprise value remained above its $45 billion Bitcoin reserve.
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