- Bitcoin plunged over 50% from its October 2025 peak of $126,000, wiping $2 trillion from the combined crypto market.
- The sell-off intensified after Strategy sold 32 bitcoin, its first sale since 2022, breaking its ‘never sell’ mantra to fund dividends.
- Market participants are braced for Strategy founder Michael Saylor to reveal if the company bought back bitcoin or sold more, a move that could dictate short-term price action.
- Analysts warn that if the $60,000 support level fails, bitcoin could revisit $55,000.
Bitcoin and the broader crypto market have been rocked by a massive sell-off this week, with prices crashing to levels not seen since before Donald Trump retook the White House. The downturn, which has erased $2 trillion in market value, was triggered by Strategy‘s unexpected bitcoin sale and fresh fears over U.S. dollar stability.
Consequently, the Bitcoin Price has plummeted more than 50% from its October 2025 peak of $126,000. This collapse led billionaire Mark Cuban to suddenly flip on crypto and prompted a stark warning from JPMorgan chief executive Jamie Dimon, according to reports.
Matt Mena, senior crypto research strategist at 21shares, said in emailed comments that “This selloff appears to be driven less by a breakdown in bitcoin’s long-term fundamentals and more by a short-term confidence shock.” He added, “If $60,000 fails to hold, bitcoin will likely revisit the $55,000 support level.”
The focal point is Strategy, which sold 32 bitcoin worth $2.5 million last week, an action Michael Saylor claimed was part of a plan to make its dividend shares “the best credit instrument in the world.” This marked its first sale since December 2022, when it sold around 700 bitcoin to harvest tax losses.
Richard Green, Head of Institutional at RootstockLabs, noted the sale created market uncertainty. All eyes are now on Saylor’s X account for a potential Sunday update on whether Strategy bought back the bitcoin or sold more.
However, some analysts believe more sales are needed. Jeff Dorman, chief investment officer at Arca, posted that Saylor must announce selling $4 billion in stock and bitcoin to secure runway. He warned, “if he doesn’t, and he continues to just wait it out … this selling won’t stop.”
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