Bitcoin slid beneath the $70,000 mark for the first time in 15 months, continuing a slide that has witnessed the leading cryptocurrency shed over 44% of its valuation since its high point in October 2025. During morning trading in New York this Thursday, the price of bitcoin touched $69,821, a level not observed since Donald Trump’s electoral victory in November 2024. Observers are characterizing the market as undergoing a “crisis of confidence,” marked by profoundly negative sentiment and increasing doubt concerning bitcoin’s function as a “safe haven” amidst periods of market turbulence.
This recent wave of selling has impacted more than just Bitcoin. Roughly $722 million in long positions across various digital currencies have been liquidated within the preceding 24 hours, signaling strain on interconnected assets. While previous drops were largely attributable to factors unique to crypto, the present decline is prompted by a coordinated sell-off in equities: the Nasdaq 100 index decreased by over 2%, with losses extending to software companies, semiconductor manufacturers, and other segments sensitive to interest rates.
These occurrences have heightened the difficulties for digital asset companies, or DATs, that possess substantial cryptocurrency holdings. Over the past year, the biggest DATs have experienced a median decrease of 62%, substantially exceeding bitcoin’s decline. Numerous DATs are valued below their cryptocurrency reserves, leading stakeholders to ponder if a liquidation might generate superior returns. Even strategy forerunners such as Michael Saylor’s Strategy Inc. have witnessed their share values plummet: Strategy’s valuation is now only 9% above its bitcoin holdings, a steep drop from a premium exceeding 300% at its peak.
Analysts indicate that interest in DATs has lessened considerably. Investors formerly paid significant premiums for cryptocurrency firms, anticipating an increase in bitcoin’s price. With cryptocurrencies currently failing to generate revenue, entities with weaker financial footing are compelled to liquidate assets to meet operational expenses or service debt commitments. Recent illustrations encompass Empery Digital Inc., which initiated the sale of bitcoin to repurchase its shares, and ETHZilla Corp., which divested $74.5 million in tokens to reduce its debt load.
Businesses with robust financial positions are able to navigate the downturn, but smaller entities remain susceptible, particularly those that financed cryptocurrency acquisitions via debt. Mergers and acquisitions are being contemplated as a possible solution, exemplified by Strive Inc.’s acquisition of Semler Scientific Inc.
In general, the convergence of decreasing Bitcoin valuations and reduced premiums for firms with cryptocurrency holdings emphasizes the escalating challenges for both cryptocurrencies and the companies that have heavily invested in them. As one market watcher remarked, “If you want to own Bitcoin, just own Bitcoin,” reflecting a change in investor focus away from intricate corporate structures toward possessing the core asset directly.
Source: Bloomberg