Bitcoin falls below $60,000, hits lowest since October 2024
What's the story
Bitcoin has fallen below the key $60,000 mark on Wednesday, hitting a low of around $59,000. This is its lowest price since October 2024. The sharp decline has sparked concerns across the crypto market as investors fear that one of Bitcoin's biggest supporters could be under financial pressure. Strategy Inc. led by Michael Saylor and known for its massive Bitcoin holdings and purchases, is at the center of these worries.
Investor concerns
Concerns over Strategy's funding and aggressive buying
Strategy Inc. is sitting on billions of dollars in unrealized losses due to Bitcoin's prolonged decline. These losses have raised concerns over its ability to keep up with the aggressive buying levels that investors have come to expect. This comes as the crypto market suffers heavy losses, with CoinGlass data showing nearly $800 million worth of crypto positions betting on higher prices were wiped out in just 24 hours amid falling prices.
Market dynamics
Bitcoin options contracts expiry approaching
The market decline comes just ahead of the expiry of around $10 billion worth of Bitcoin options contracts on Friday. This is according to data from Deribit cited by Bloomberg. Bitcoin fell as much as 5.4% during trading, hitting a low of about $59,023 before recovering slightly later in the day. Unlike previous crypto market crashes where small investors supported the market by buying during price dips, many retail investors are now looking at AI stocks instead of cryptocurrencies.