Bitcoin's price has dropped for the fourth consecutive day, sliding 2.5% in the last 24 hours to just below $62,400. This downturn has negatively impacted major cryptocurrencies, including ether and XRP, with the CoinDesk 20 Index (CD20) declining by 3.3%. The CoinDesk Smart Contract Platform Select Capped Index fell by 4%, reflecting widespread losses across the market.
Investor anxiety has intensified surrounding Strategy (MSTR) and its preferred stock, STRC, as the company and struggling Bitcoin miners face potential asset sales due to prolonged periods of Bitcoin trading below production costs, now estimated at $78,000. Analysts at Marex have highlighted that the market is adjusting to the likelihood that Strategy may need to liquidate Bitcoin holdings to maintain its operations.
Furthermore, over $450 million in leveraged positions were liquidated in the past day, primarily affecting long positions, as market bulls face challenges from a recent hawkish Federal Reserve meeting. The demand for protective Bitcoin puts has surged, indicating traders are preparing for further declines, potentially down to $52,000.
