Bitcoin Price Stabilizes After Breaking $60,000 Barrier; Saylor Hints at Purchase

SadaNews - Bitcoin stabilized during trading in Asia on Monday after it fell below the $60,000 level late last week, as the chairman of Strategy, Michael Saylor, hinted at making additional purchases.

The largest cryptocurrency in the world rose by up to 3.8% to approach $64,200, before trading near $63,000 by noon in Singapore. Meanwhile, Ether, the second-largest cryptocurrency by market capitalization, increased by over 3% to around $1,680.

Bitcoin Decline

Bitcoin had dropped by as much as 7% to $59,101 last Friday during New York trading, falling below the $60,000 threshold for the first time since Donald Trump won a new presidential term in 2024. The disclosure by Strategy of selling a limited amount of Bitcoin, its first sale since 2022, contributed to the 18% decline in the currency over the past week, undermining the prevailing narrative that the digital asset treasury company would never sell its holdings.

Bitcoin Price Drops Below $60,000 for the First Time Since Trump's Victory in the 2024 Elections

A post by Saylor on social media suggested that Strategy might announce more Bitcoin purchases, helping to allay market fears.

He stated in a post on "X": "It’s a good time to add more buy points."

Richard Galvin, CEO of DACM, a cryptocurrency investment company, explained that the market appeared to be in an overly sold situation, adding that Saylor's post on "X" this morning "indicates he was about to buy."

He continued: "The most important factor in the short term for determining the direction of the cryptocurrency market will likely be the 8-K disclosure model that the company will submit this morning in the United States, as it will clarify what the company has done over the past few days," referring to the disclosure filing made to the U.S. Securities and Exchange Commission.

Very Fragile Confidence

However, traders did not seem convinced that the current recovery is sustainable. Galvin stated: "We have reduced our investment positions across the entire portfolio and raised our cash liquidity to its highest level in two years."

Bitcoin has lost nearly half of its value since it peaked above $126,000 in October last year.

Last week's decline was the result of a combination of investors pulling their money from Bitcoin-linked exchange-traded funds, renewed geopolitical tensions, and growing concerns about the sustainability of digital asset treasury models like Strategy, which is considered one of the main sources of demand in the market.

Bitcoin briefly cut its gains today following news of an Israeli retaliatory attack on Iran, while the war continues to cast a shadow over economic prospects.

Prateek Kala, a portfolio manager at the digital asset hedge fund Apollo Crypto, stated: "Investor confidence is very fragile," adding that much will depend on the next steps taken by Strategy.

He concluded by saying: "We have made large purchases to hedge against the downward trend through put options. Transactions based on the hypothesis of a return to historical averages typically emerge after significant downturns. Some algorithmic trading firms and traders enter the market at these stages, while others may bet that Saylor and Strategy have a bigger plan."