Bitcoin dropped below the key $60,000 level on Wednesday, its lowest price since October 2024, sparking fresh crypto market fears. The sharp fall has raised concerns across the market, as many investors worry that Strategy Inc., one of Bitcoin's biggest supporters, may be facing financial pressure.
Strategy Inc., led by Michael Saylor, owns hundreds of thousands of Bitcoins and has been one of the largest Bitcoin buyers in the world. Investors are now wondering if Strategy can continue to raise money and buy Bitcoin aggressively as it did before.
Data from CoinGlass shows that about $800 million worth of crypto positions were wiped out in the last 24 hours as prices fell. The market decline is also happening just before around $10 billion worth of Bitcoin options contracts are due to expire on Friday.
Bitcoin fell by as much as 5.4% during trading and dropped to around $59,023 before recovering a little later in the day. Strategy's stock has now dropped for six trading days in a row and has reached its lowest level since February 2024.
The yield on Strategy's preferred shares has risen to about 14%, showing that investors want higher returns because they see more risk. Many retail investors seem more interested in investing in artificial intelligence (AI) stocks instead of cryptocurrencies, which has weakened Bitcoin demand.
