Bitcoin Price Analysis: BTC Recovers To $70k Following Crash To $60k As Market Sentiment Sinks To Lowest Point Since 2022 

Bitcoin (BTC) slumped to its lowest level in over three and a half years, falling to $60,000 on Coinbase before rebounding to reclaim $70,000 and moving to its current level. The flagship cryptocurrency is down 5% during the ongoing session, trading around $66,192. 

The latest downtrend has seen Bitcoin lose 30% in a week as it plunged to $60,000. The magnitude of the downturn has sparked speculation that the sell-off is being driven by an entity facing forced liquidations rather than the usual market jitters. 

Strategy Reports $12.4 Billion Net Loss 

Michael Saylor’s Strategy has reported a $12.4 billion net loss for the fourth quarter. The loss was driven by mark-to-market declines in its Bitcoin holdings. The loss came at a time when the flagship cryptocurrency briefly slipped below the $60,000 mark, putting Strategy’s Bitcoin stash below its cumulative cost basis for the first time since 2023. The decline also wiped out all the gains made during the post-election rally. The company has also not announced new equity issuance or debt financing alongside its earnings, indicating lesser access to liquidity as investor appetite cools. 

Strategy executive chairman Michael Saylor has insisted the company faces no margin calls and holds $2.25 billion in cash. Saylor has insisted the company’s cash-in-hand is enough to cover interest obligations for over two years. However, the company is under tremendous pressure as Bitcoin trades well below Strategy’s average acquisition price of $76,052. Strategy also revealed in its quarterly earnings that it does not expect to generate profits in the foreseeable future. 

Strategy’s Bitcoin Now Worth Less Than $50 Billion 

Strategy holds over 713,000 BTC, valued at around $46 billion, according to Bloomberg data. The Bitcoin treasury company added $75.3 million BTC in late January. However, its broader business model is under considerable strain. Benchmark analyst Mark Palmer believes investors are focusing on whether Strategy can raise capital to fund further Bitcoin purchases under increasingly trying market conditions. 

Critics, including ace investor Michael Burry, have warned that if Bitcoin continues declining, it could trigger substantial losses for treasury companies like Strategy. The downturn has also revived short seller concerns about Strategy’s reliance on leverage and non-yielding assets. Strategy shares are currently down nearly 89% from the November 2024 peak. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) plunged to $60,000 early on Friday, its lowest level since November 2024, as the Crypto Fear & Greed Index dropped to 9, its lowest level since 2022. The sentiment index fell to a score of 9 out of 100 on Friday, putting it firmly in “extreme fear” territory. 

Analysts have pointed out that Bitcoin has fallen below its 200-week exponential moving average, a move previously seen during peak bear markets. The downturn means BTC is 50% down from its all-time high of $126,000. Over 588,000 traders have been liquidated for over $2.7 billion, with 85% of them leveraged longs in Bitcoin.  Bitcoin’s downturn comes amid an unprecedented selloff in tech stocks triggered by stretched valuations and concerns about an artificial intelligence bubble. 

Stretched valuations and lingering concerns around an artificial intelligence-driven bubble have long been highlighted by the market. Even Amazon suffered a double-digit decline overnight following a mixed earnings release. Investors are increasingly reassessing Bitcoin’s failure to function as a haven compared to gold.

A popular crypto trader called the sell-off the most vicious selling he had seen in years, adding that it felt “forced” and “indiscriminate.” The trader put forward several possibilities, including a sovereign dump to an exchange balance sheet blowup. 

Bitcoin ended the previous weekend in the red, dropping nearly 3% on Sunday to $86,561. The price recovered on Monday, rising almost 2% to cross $88,000 and settle at $88,250. Buyers retained control on Tuesday as the flagship cryptocurrency rose 0.98% to $89,116. BTC briefly crossed the $90,000 mark on Wednesday, reaching an intraday high of $90,476 before settling at $89,162. Selling pressure returned on Thursday as BTC plunged over 5% to $84,513. Buyers retained control on Friday as the price fell to $81,000 before settling at $84,110.

Source: TradingView

Selling pressure intensified on Saturday as BTC plunged below the key $80,000 mark, falling to a low of $75,644 before settling at $78,648. Price action remained bearish on Sunday as BTC fell 2.24% to $76,895. The current week started with BTC falling to $74,502, its lowest level since April 2025. The price recovered to reclaim the $78,000 mark and settle at $78,666. Selling pressure returned on Tuesday as BTC plunged to a low of $72,859 before settling at $75,661. Sellers retained control on Wednesday as the price fell 3.52% to $72,998. Selling pressure intensified on Thursday as BTC plunged nearly 14% to $62,791. The flagship cryptocurrency fell to a low of $60,001 on Friday. However, it rebounded from this level to reclaim $67,000 and move to its current level of $67,296.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.