Bitcoin Hits $78,000 as Saylor’s Investment Encounters Pressure
Bitcoin experienced a significant decline over the weekend, falling below $80,000 for the first time since April 2025. Persistent selling pressure and a diminishing influx of new capital have severely affected the cryptocurrency market.
Bitcoin’s Recent Performance
On Saturday, Bitcoin dropped as much as 10%, hitting $75,709.88 during afternoon trading in New York. This decline extends a downturn that has now seen over 30% wiped from its peak value.
Impact on Major Cryptocurrencies
Other cryptocurrencies also faced substantial losses. Ether fell by 17% and Solana experienced a similar drop, reflecting a broader weakness across key digital assets.
- Bitcoin: Down to $75,709.88
- Ether: Decreased by 17%
- Solana: Also dropped over 17%
The recent selloff has resulted in a loss of approximately $111 billion from the total cryptocurrency market capitalization within 24 hours, as reported by CoinGecko. Additionally, about $1.6 billion in leveraged long and short positions were liquidated primarily in Bitcoin and Ether, according to Coinglass data.
Lack of Fresh Capital
The downturn comes amid diminishing liquidity and weak buying interest. Analysts note that the market is struggling to attract new investments. Ki Young Ju, CEO of CryptoQuant, highlighted a concerning trend, stating that Bitcoin’s realized capitalization has leveled off, suggesting that new capital is not being injected into the market. He explained:
“When market cap falls without realized cap growing, that’s not a bull market.”
Market Dynamics and Long-Term Holders
According to Ju, early Bitcoin investors are sitting on significant unrealized gains due to prior aggressive purchases by Bitcoin exchange-traded funds (ETFs) and Michael Saylor’s MicroStrategy. However, profit-taking by these long-term holders has persisted since early 2024, coinciding with a marked slowdown in demand.
While MicroStrategy has been instrumental in supporting the Bitcoin rally, Ju believes that a dramatic crash of approximately 70% is unlikely unless the company begins to sell its Bitcoin assets. Nevertheless, the ongoing selling pressure raises concerns about the absence of a stable market bottom.
Historical Context
Bitcoin’s latest drop below $76,037 puts MicroStrategy’s Bitcoin holdings under pressure but does not induce immediate financial distress, as reported by CoinDesk. This decline resembles scenarios following the “Liberation Day” fallout and adds to ongoing macroeconomic frustrations for Bitcoin.
Despite favorable conditions in January, including a weaker U.S. dollar and gold reaching record highs, Bitcoin has struggled to maintain momentum. Investor expectations that crypto would act as a safe haven amidst market fluctuations have been dampened.
Outlook for the Crypto Market
Ju anticipates that the current market downturn will not conclude with a swift recovery but may instead lead to an extended period of sideways trading. He stated:
“This bear market is more likely to form a wide-ranging consolidation.”
The prevailing conditions highlight the persistent challenges facing the cryptocurrency market as traders and investors navigate uncertainty.
