Bitcoin Plunges Below $64K as Strategy Sells 1,690 BTC
Bitcoin (BTC) dropped below $64,000 on Monday after Strategy sold 1,690 BTC to fund preferred stock repurchases. The sale came against a backdrop of regulatory and technical headwinds, including controversy surrounding the CLARITY Act vote and a BIP-110 chain split.
The downturn erased over $20 billion from Bitcoin's market capitalization, dropping it from $1.3 trillion to $1.28 trillion in under four hours. It also wiped out more than $47 million in long leveraged positions over 24 hours, compared to short liquidations of around $12 million.
Strategy CEO Phong Le said the sale was part of their Digital Credit Capital Framework, which aims to optimize capital structure and secure preferred obligations during market volatility.
Critics, including Peter Schiff, have questioned the logic of buying or holding Strategy's common stock. They argue that the company's move has reduced the Bitcoin yield by 87% since May 25th.