Just days after CryptoQuant urged Strategy () to take a step back on its Bitcoin acquisition strategy, the company has been hit with a huge blow. Strategy’s unrealized Bitcoin has risen to $13 billion, one of the biggest in corporate history.
Now, the world’s biggest corporate Bitcoin holder is staring at a historic financial hole. This comes on the backdrop of a huge price drop. Bitcoin price has dropped under the key $60,000 support, with indicators hinting at a deeper price drop.
Strategy’s Paper Loss Hits $13 Billion
The sheer scale of the current crypto downturn is hitting corporate balance sheets hard. Strategy (MSTR), the largest corporate holder of Bitcoin globally, is feeling the heat. The company now holds roughly 844,000 , per BitcoinTreasuries. However, its average purchase price sits near $75,600 per coin.
With Bitcoin diving into the high $50,000 range, Strategy’s unrealized mark-to-market loss has officially crossed the $13 billion threshold. Thanks to fair-value accounting rules, these massive paper losses flow directly into the company’s quarterly income statements. To put this into perspective, this $13 billion hit is larger than the entire market cap of Dogecoin, Cardano, Chainlink and Uniswap.
A single leveraged bet has wiped out more paper value than the actual utility of multiple entire crypto ecosystems. Critics are already warning that the company’s stock could face a massive discount relative to its underlying assets.
Logs $239 Million Outflow
The pain isn’t isolated to corporate treasuries. Institutional enthusiasm is also evaporating rapidly. BlackRock’s iShares Bitcoin Trust (IBIT) just logged a staggering $239 million net outflow in a single day.
This massive withdrawal led to a broader $469 million exodus from spot Bitcoin ETFs, marking one of the worst days since early June. This is the seventh consecutive week of shaky ETF flows. Buyers who entered the market at all-time highs are now sitting deep underwater.
Retail demand in the United States has largely dried up, as shown by deep discounts on local exchanges. Instead of buying the dip like they used to, investors are chasing clearer fundamentals elsewhere, particularly AI equities.
Bitcoin Price Slips Under $60,000
The heavy selling pressure finally broke the line in the sand. Bitcoin recently slipped under the psychological $60,000 support level, hitting a low of around $58,223. BTC price has stabilized at around $59,360, per CoinMarketCap.
This is the lowest price the digital asset has seen since October 2024. The Federal Reserve’s preferred inflation gauge climbed to its highest level since 2023. Geopolitical tensions and a massive $10 billion options expiration have added heavy fuel to the fire.
BTC Technical Indicators Flash Strong Sell Signals
Looking at the charts on Investing.com, the immediate future looks incredibly grim. Bitcoin’s indicators have completely flipped to a strong sell signal. Both daily and weekly moving averages (5, 10, 20, 50, 100, 200) are firmly in the bearish zone.
Momentum oscillators are flashing warning signs across the board. RSI (14) has dropped under 30 and CCI (14) is at -189.0186, both strong bear signals. The ATR(14) is also flashing a drop in volatility, which solidifies the bearish outlook.