On Tuesday, Bitcoin's price dropped to $67,692.76, marking a decline of over 5% and its lowest level since April 5. Ether also fell by 3%, with other crypto stocks like Strategy, Galaxy, and Coinbase experiencing losses of more than 8%, 4%, and 3%, respectively.
The downturn began after Strategy, a company known for its Bitcoin treasury holdings, sold a small amount of Bitcoin, contradicting its founder Michael Saylor's previous stance of never selling. This sale spooked investors and triggered a wave of long liquidations, with exchanges reporting $594 million in liquidations over the past 24 hours.
Bitcoin has struggled to regain its October peak of over $126,000, facing pressure from geopolitical uncertainties, particularly surrounding the U.S.-Iran conflict. Additionally, Bitcoin ETFs have seen their longest streak of net outflows, indicating waning investor confidence.
The current situation puts Bitcoin's narratives as 'digital gold' and a high beta tech stock under scrutiny, as it fails to respond positively to market conditions that typically favor its price