MicroStrategy Chairman Michael Saylor speaks at the Bitcoin 2024 Conference in Nashville, Tennessee on July 26, 2024.
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strategy Bitcoin plunged 8% on Monday after falling below crypto treasury firms’ average purchase price per token.
Bitcoin was trading at around $74,500 at its low on Monday, its lowest price since April of last year.
That’s just below Strategy’s average purchase price of $76,052 per bitcoin, according to a Feb. 2 regulatory filing, raising concerns that Michael Saylor’s company could be underwater if the digital currency continues to fall. According to the company’s website, it holds approximately $56 billion in Bitcoin.
The drop in stock prices comes after Bitcoin has fallen 11% over the past five days, mainly due to heightened geopolitical concerns and expectations for a shift in U.S. monetary policy.
Last week, investors moved money out of risk-on assets in global markets, including cryptocurrencies, as tensions escalated between President Donald Trump and European leaders over the US’ Greenland strategy. On Friday, President Trump endorsed Kevin Warsh as his nominee for Federal Reserve Chairman, making investors even more cautious.
A series of forced liquidations also amplified the collapse of Bitcoin. More than $2 billion in long and short positions related to the asset have been liquidated since Thursday, according to Coinglass data.
