Bitcoin has lost roughly half its value since reaching a record above $126,000 in October, falling to levels last seen in September 2024 despite improving crypto regulation expectations and the absence of major scandals. The decline appears driven by a steady drop in investor interest rather than a single market event, with Bitcoin also falling below $60,000 for the first time in two years after Strategy Inc. disclosed the sale of 32 Bitcoin worth $2.5 million. Growing integration into traditional finance through Bitcoin-backed ETFs means portfolio managers now play a larger role in demand, while higher interest rates have reduced the appeal of the non-yielding asset. Strategy, which holds more than 4% of the roughly 20 million Bitcoin in circulation, made its first sale since December 2022, raising questions about its ability to sustain dividends on preferred shares. Regulatory uncertainty persists as negotiations over the Digital Asset Market Clarity Act remain divided on issues including regulatory jurisdiction, interest-bearing stablecoins, and Section 604 protections.
MicroStrategy IncorporatedStrategy Inc. (MicroStrategy) sold 32 Bitcoin for $2.5 million, its first sale since Dec 2022, raising questions about dividend sustainability on preferred shares.