The cryptocurrency market has experienced an abrupt correction in the last 24 hours, with the Bitcoin price drop dragging the quotation below the psychological barrier of $100,000, heading towards $95,000.
The plunge in the price of the pioneer crypto was exacerbated by a wave of rumors presuming a massive $1 billion sale linked to a transfer from “Strategy” (referring to MicroStrategy’s corporate treasury).
However, these rumors seem to directly contradict the company’s historical policy. Michael Saylor, co-founder and former CEO, has stated on multiple occasions that the company has no intention of selling its holdings. In fact, as of press time, the firm continues to accumulate assets almost weekly and holds a colossal reserve of over 641,000 BTC. Despite the strength of these fundamentals, fear, uncertainty, and doubt (FUD) have managed to accelerate the liquidation of long positions in the short term.
Volatility After Government Shutdown
The current macroeconomic and political landscape are important actors in this volatility. Just on Thursday, Bitcoin had reached $104,000, a boost driven by euphoria after U.S. President Donald Trump signed legislation to end the government shutdown.
But, those gains quickly disappeared. The market went from celebration to “free-fall mode” in a matter of hours, demonstrating fragility in the current support. Investors are now watching whether the $95,000 area will act as a floor or if panic over institutional whale movements will trigger a deeper correction.
The information presented in this article is for informational purposes only and should not be interpreted as investment advice. The cryptocurrency market is highly volatile and may involve significant risks. We recommend conducting your own analysis.