Bitcoin Dips to $87,000 on Strategy Reserve Moves
The company led by Michael Saylor disclosed that it raised $748 million in the week ending December 21 without buying Bitcoin.
Quick overview
- Risk aversion in the crypto market persists as investors await a potential Federal Reserve rate cut.
- Bitcoin is down 2.4% at $87,856, while Ethereum has fallen 3% to $2,959, with altcoins also experiencing declines.
- Investor caution is influenced by anticipated U.S. economic data, contributing to a risk-off sentiment in the markets.
- Strategy Inc. has paused Bitcoin purchases and increased cash reserves, reflecting a cautious approach amid potential price cooling.
Risk aversion remains elevated across the crypto market as investors await a potential Federal Reserve rate cut to reignite interest.
The cryptocurrency market is trading lower, with Bitcoin (BTC) down 2.4% at $87,856, according to Binance. Ethereum (ETH) is following the same trend, falling 3% to $2,959.
Altcoins are broadly weaker as well: BNB is down 2.3%, Ripple (XRP) is off 2.6%, and Solana (SOL) declines 3.3%.
Bitcoin’s rally stalls on U.S. data and Strategy moves
Investor caution has been driven largely by anticipation of key U.S. economic data, adding to the risk-off sentiment that has dominated markets over the past month. Overall losses, however, have been limited by thin trading volumes due to the year-end holiday period.
U.S. third-quarter GDP data are expected to show a slight slowdown in growth compared with the previous quarter, reflecting softer retail spending and a cooling labor market. Investors are also awaiting October’s Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge.
Meanwhile, Strategy Inc., the world’s largest corporate holder of Bitcoin, has paused BTC purchases in recent weeks and increased its cash reserves, positioning itself for a potential cooling in crypto prices.
In a regulatory filing, the company led by Michael Saylor disclosed that it raised $748 million in the week ending December 21 without buying Bitcoin. Earlier this month, Strategy had purchased roughly $2 billion worth of BTC, bringing its total holdings to 671,268 bitcoins. Strategy’s shares have fallen by roughly half in value so far in 2025.
Traditional markets
Major Wall Street indexes are trading modestly lower on Tuesday, despite the release of some U.S. economic data that came in better than expected. Elsewhere, global markets are posting slight gains.
In this context, the S&P 500 is down 0.02%, while the tech-heavy Nasdaq Composite edges up 0.03%. The Dow Jones Industrial Average is trading flat.
Top gainers include Albemarle (+5.23%), Gilead Sciences (+3.03%), and Regeneron Pharmaceuticals (+1.13%). On the downside, Hershey (-3.87%) and First Solar (-2.65%) are among the biggest decliners.
Heading into the final stretch of the year, Wall Street indexes are posting broad gains in 2025: the Nasdaq is up 18.54%, the S&P 500 has risen 15.14%, and the Dow Jones is higher by 12.72%.
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