Bitcoin’s recent movements present a mix of momentary optimism and significant concern for investors. This morning, the cryptocurrency experienced a modest uptick of 5%, increasing its price to $65,900 per coin. However, this glimmer of positive news starkly contrasts with the broader picture of declining values. Over the past months, Bitcoin’s price has plummeted nearly 50% from its peak of approximately $125,000 in October 2025 to a low of $61,300 just yesterday.
The situation is compounded for companies tied to Bitcoin, particularly Strategy, led by notable figure Michael Saylor. Shares in Strategy dropped 17% yesterday and have fallen 75% from their peak value last year. At the current Bitcoin price, Strategy’s acquisition cost of $76,000 per Bitcoin puts it significantly underwater, leading to a market cap that lags behind the actual value of the Bitcoin it holds. Despite these difficulties, the company reassured investors on their Q4 earnings call, stating they can manage their convertible debt even if Bitcoin depreciates by 90%, with sufficient cash reserves to honor dividends for over two years.
The downturn in Bitcoin’s value is attributed to large holders, or “whales,” selling off their assets. Jefferies analyst Andrew Moss noted that these whales shifted to net sellers over the weekend after a period of accumulation that began in January. This selling trend aligns with significant outflows from retail investors, particularly those involved with Bitcoin through exchange-traded funds (ETFs). Recent weeks have seen some of the largest net outflows since the inception of these products.
Analysts are expressing caution, recalling past tumultuous events in the cryptocurrency market. Deutsche Bank’s Henry Allen pointed out that Bitcoin’s performance yesterday marked its worst daily decline since November 2022, a critical period when the FTX crypto exchange faced collapse. Paul Donovan from UBS succinctly summarized the market sentiment, dismissing cryptocurrency as a mainstream asset and suggesting little potential for consumer behavior change in light of recent market volatility.
Amidst the pessimism, reactions from respected voices within the crypto community reflect a troubling outlook. Chevy Cassar, in today’s edition of the Milk Road newsletter, openly lamented the current state of the market, hinting at further declines based on historical patterns that predict significant downturns can last anywhere from one to eleven months. Meanwhile, Fabian Dori of Sygnum Bank remarked on the current market climate, describing it as nearing “peak fear territory.”
Despite the turmoil within the cryptocurrency sector, broader stock markets displayed some resilience this morning. S&P 500 futures registered a 0.54% increase, while the STOXX Europe 600 and other global indices in the U.K., Japan, and India also saw modest upticks. Conversely, China’s CSI 300 and South Korea’s KOSPI reflected declines.
As Bitcoin settles at $65,900, investors and analysts alike remain watchful, hoping for a stabilizing turn in what many are describing as a challenging crypto winter.
