The cryptocurrency market is facing a major downturn with Bitcoin treasury firms seeing their combined market value plunge by $62 billion as the sector endures a deepening rout.
Bitcoin has dropped to around $62,000, its lowest level since February, following a bruising week where the token shed roughly 16% of its value.
This sharp decline is being driven by a combination of geopolitical tensions – specifically renewed conflict in the Middle East – and a mass exodus from spot Bitcoin ETFs, which have seen over $3.9 billion in outflows over the last 12 days.
Market sentiment was further rattled after Strategy Inc. broke its long-standing “never sell” vow, offloading a small portion of its holdings to cover dividends.
“Bitcoin price is down this week as Strategy broke its ‘never sell’ vow that shattered the confidence of the market” noted Josh Du, chief investment officer at Animoca Brands.
While many investors are now moving capital into AI stocks and traditional safe havens, analysts suggest the market remains in an oversold state.
“With oil climbing into a tightening macroeconomic situation, we see real risk that Bitcoin may fall below the $62,000 floor that’s held since the Iran war,” Du added.
