Bitcoin Crashes Below $100K Amid Musk’s $38T Crisis Warning

Bitcoin Price Drops Below $100K as Sequans Sells Bitcoin to Cut Debt Amid Market Uncertainty and Treasury Company Pressure

  • Bitcoin Price has dropped below $100,000, declining 20% from its early October peak.
  • Sequans, a chipmaker, sold almost 1,000 Bitcoin at a loss to cut its debt by half.
  • Bitcoin treasury companies hold about 1 million bitcoin but face market pressure amid a stalled rally.
  • Debt-linked bitcoin holders might be forced to sell, potentially causing a market decline.
  • Experts note weakening buying interest and uncertainty as the market searches for a bottom.

The price of bitcoin fell below $100,000 per coin in late 2025, marking a 20% decline since reaching an all-time high of $126,000 earlier in October. This drop comes despite expectations of a significant policy announcement from the Federal Reserve.

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New York Stock Exchange-listed chipmaker Sequans sold nearly 1,000 bitcoin at a loss, totaling nearly $100 million, to reduce its debt from approximately $189 million to $94 million. The sale cut Sequans’ debt-to-net asset value (NAV) ratio from 55% to 39%, leaving the company with just over 2,200 bitcoin valued at about $240 million. CEO Georges Karam stated, “Our bitcoin treasury strategy and our deep conviction in bitcoin remain unchanged. This transaction was a tactical decision aimed at unlocking shareholder value given current market conditions.”

Cory Klippsten, CEO of Swan Bitcoin and responsible for Sequans’ treasury strategy, explained that the company’s private investment in public equity (PIPE) deal was overly leveraged at nearly 50%. The recent bitcoin sale and PIPE deal together provided more flexibility to manage the company’s financial position with lower leverage and options like buybacks. Sequans’ stock price has dropped roughly 80% this year, with only a brief increase in July when the company announced its bitcoin purchase.

The bitcoin treasury company trend, pioneered by Michael Saylor‘s Strategy, has grown to nearly 200 firms, including companies like GameStop and Tokyo-based Metaplanet, which is backed by U.S. President Donald Trump‘s sons. Collectively, these companies hold about 1 million bitcoin, worth close to $100 billion. However, recent data shows these companies have reduced bitcoin purchases since the October price downturn, increasing speculation that some may be forced to sell to repay debt, which could trigger further market declines.

David Duong, head of investment research at Coinbase, noted on X that bitcoin treasury companies have mostly stayed inactive after the mid-October price drop. Meanwhile, market observers like Ray Youssef, CEO of NoOnes, highlighted “a classic exhaustion phase”, with positive news having little effect and negative news causing immediate sell-offs. This pattern suggests weakening demand from retail buyers and ongoing uncertainty as the market searches for a local bottom.

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