- Bitcoin’s price has plunged to $60,000 as traders brace for Federal Reserve moves and a key options expiry.
- Concerns are mounting over the financial health of Bitcoin giant MicroStrategy, with its stock and preferred equity trading at steep discounts.
- Former President Donald Trump has refused to sign a bipartisan housing bill containing a CBDC ban, casting doubt on crypto legislation.
- Analysts warn a sustained break below $60,000 for bitcoin could trigger a price cascade toward $54,000.
Bitcoin and cryptocurrency markets faced intense pressure this week, with prices falling sharply as macroeconomic anxiety and corporate uncertainty converged. The Bitcoin Price plunged to $60,000, breaking its correlation with high-growth tech stocks and igniting fears of a deeper correction.
Analysts with the Bitfinex exchange warned the “asymmetry is to the downside.” They noted Friday’s $10.6 billion quarterly options expiry acted as a price magnet, with a sustained move below $60,000 risking a cascade toward $54,000.
Meanwhile, shares of MicroStrategy have plunged to $85, down 85% from its peak last summer. The company’s perpetual preferred stock, known as strum, is trading at all-time lows of $75. “Volatility tests every capital structure. MicroStrategy remains focused on bitcoin, disciplined capital allocation, credit quality, and long-term value creation,” CEO Michael Saylor posted to X.
“The wobbly behavior of MicroStrategy continues to scare the market, harkening back to other major blow ups the market has seen,” said Two Prime CEO Alex Blume. However, Blume called it “a good time to buy” bitcoin, arguing the drawdown is emotional rather than structural.
“Concerns are mounting about MicroStrategy’s financial health, as it lacks sufficient dollar reserves to pay dividends and reduce its debt burden, potentially prompting the sale of part of its bitcoin holdings,” warned FxPro’s Alex Kuptsikevich. This potential selling could trigger a broader price spiral.
Consequently, political developments added another layer of uncertainty. Former President Donald Trump refused to sign a bipartisan housing bill that includes a four-year ban on a central bank digital currency. “Today’s housing news conference and signing is hereby cancelled until such time as we pass the desperately needed Save America Act,” Trump posted to his Truth Social.
This refusal casts doubt on the potential signing of the pivotal Clarity Act, a bipartisan crypto market structure bill many saw as a recovery catalyst. The regulatory ambiguity continues to weigh heavily on institutional sentiment and market stability.
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