The cryptocurrency market suffered another severe setback as bitcoin slipped below $70,000, intensifying losses across major holders, exchanges, and crypto-linked equities. In a single day, the total crypto market shed roughly $140 billion in value, extending a broader downturn marked by forced liquidations and growing investor unease.
The decline came even as Strategy, the company chaired by outspoken bitcoin advocate Michael Saylor, continued to accumulate the cryptocurrency. Just three days after its bitcoin position showed losses exceeding $9.5 million, the firm purchased an additional 855 BTC for about $75.3 million.
Buying into weakness as losses mount
The latest purchase immediately pushed Strategy deeper into the red. As bitcoin fell below $75,000 shortly after the acquisition, the company’s bitcoin holdings swung to more than $900 million in unrealized losses, underscoring the risks of aggressive buying during a steep downtrend.
The pressure has spilled over into equity markets. Shares of MicroStrategy fell to their lowest level since September 2024, with the stock now down roughly 78% from its November 2024 peak. The company’s cumulative bitcoin position is approaching an unrealized loss of $3 billion, amplifying concerns about balance-sheet exposure amid sustained crypto weakness.
As previously covered, MicroStrategy’s stock has increasingly traded as a leveraged proxy for bitcoin, magnifying both gains and losses as the cryptocurrency swings.
Liquidations accelerate across the market
Market stress has been exacerbated by widespread forced liquidations. Over the past several days, leveraged long positions totaling approximately $2.5 billion have been liquidated across crypto markets, making it the tenth-largest liquidation event in the sector’s history, according to market data.
Traders have also pointed to on-chain activity at Binance, where large flows suggest repeated liquidation of bitcoin and ethereum positions in rapid succession. While the exact sources of the selling remain unclear, the visible scale and frequency of the transfers have reinforced bearish sentiment.
Ethereum has also come under heavy pressure, compounding losses across decentralized finance and altcoin markets as liquidity thins.
Losses spread to other major buyers
The downturn has not been limited to bitcoin-focused firms. Bitmine, the crypto company associated with investor Tom Lee, disclosed the purchase of an additional 41,788 ETH valued at roughly $97 million. Despite the acquisition, the firm is now showing unrealized losses of around $7 billion on its ethereum holdings, highlighting the scale of the market’s reversal.
Analysts say the current environment reflects a classic deleveraging cycle, where falling prices trigger margin calls, forcing further selling that overwhelms organic demand. The synchronized losses across crypto assets and related equities suggest that confidence remains fragile.
For investors, the message from the market is stark. Continued buying by large players has so far failed to stabilize prices, while liquidation pressure continues to dominate short-term price action. Until leverage is flushed out and volatility subsides, analysts warn that crypto markets may remain vulnerable to further sharp swings — even as long-term believers double down on their positions.