History seems to repeat itself.
Bitcoin price is trending lower again, but this time it has fallen below the $59,000 level for the first time in about two years.
With no major catalysts known at this time, it seems that all roads today lead to Michael Saylor’s company, Strategy, and the fear and uncertainty (FUD) that surrounds it.
New drop in the price of Bitcoin:
As we reported yesterday, Strategy’s main stock, MSTR, fell 10% to a two-year low of $93.
Bitcoin price responded with a similar decline to $59,050, but the price of the currency was able to recover and even climb to around $62,000 earlier today.
However, this turned out to be just another false bounce, as the bears returned to the scene in the last thirty minutes, pushing the price of the currency to its lowest level since before the US presidential elections in late 2024, at $58,000.
Although the asset has found support at this point, the overall outlook remains strongly bearish, after the Bitcoin price lost over $20,000 in six weeks.
Analysts always associate negative movements in the price of Bitcoin with those of strategy stocks; MSTR and STRC.
The former fell another 7% to its lowest level in years at $88 today, while analyst “KALEO” expected another huge wave of decline towards $25.
As for STRC, it is a far cry from its par value of $100, as it is currently trading at $76, which actually increases pressure on the company and its massive Bitcoin holdings.
Standard qualifiers:
With most altcoins simulating the great Bitcoin crash, it is no surprise that the total value of liquidated positions increased.
The value of liquidations amounted to approximately $500 million in the past hour alone, almost all of which came from long positions.
On a 24-hour scale, the picture is more painful, as CoinGlass data shows liquidations amounting to $1.3 billion, suffered by more than 210,000 traders during the same period.
The largest liquidation took place on the Binance platform, exceeding $19 million.
Read also:
Non-stop selling wave: BlackRock continues to unload Bitcoin and Ethereum
Saylor’s model tested: the strategy bleeds with each fall in the price of Bitcoin