Bitcoin stabilized during Asian trading on Monday, after falling below $60,000 late last week, as Strategy Chairman Michael Saylor hinted at further buying activity.
The world's largest cryptocurrency rose as much as 3.8% to nearly $64,200 before trading near $63,000 by midday in Singapore. Ether, the second-largest cryptocurrency by market capitalization, also climbed more than 3% to around $1,680.
Bitcoin decline
Bitcoin had fallen as much as 7% to $59,101 last Friday during New York trading, dropping below $60,000 for the first time since Donald Trump won a new presidential term in 2024. The disclosure by Strategy& of the sale of a limited amount of Bitcoin, in its first sale since 2022, contributed to the currency's 18% decline last week, as it undermined the prevailing narrative that the digital asset treasury company would never sell its holdings.
A social media post by Saylor, in which he hinted that Strategy& might announce further Bitcoin purchases, helped to calm market fears.
He said in a post on the X platform: It's a good time to add more points of purchase.
Richard Galvin, CEO of cryptocurrency investment firm DACM, explained that the market appeared to be oversold, adding that Saylor's post on the X platform this morning indicated that he was about to buy.
Continued: The most important factor in the short term in determining the direction of the cryptocurrency market will most likely be the 8-K disclosure form that the company will submit in the morning in the United States, as it will further clarify what the company has done over the past few days, referring to the disclosure file submitted to the US Securities and Exchange Commission.
extremely fragile trust
Despite this, traders did not appear convinced that the current recovery was sustainable. Galvin said, We reduced our positions across the entire portfolio and increased our cash levels to a two-year high.
Bitcoin has lost about half its value since reaching a peak of over $126,000 in October of last year.
Last week’s decline was the result of a combination of investors withdrawing their money from Bitcoin-linked exchange-traded funds, renewed geopolitical tensions, and growing concerns about the sustainability of the digital asset treasury company model such as Strategy&, which is one of the most important sources of demand in the market.
Bitcoin briefly pared its gains today following news of an Israeli retaliatory attack on Iran, at a time when the war continues to cast a shadow over the economic outlook.
Pratik Kalla, portfolio manager at digital asset hedge fund Apollo Crypto, said: Investor confidence is very fragile, adding that much will depend on the next steps taken by Strategy&.
He concluded by saying: We executed large buy orders to hedge against the downward trend using put options. These trades typically emerge based on the assumption that prices will return to their historical averages after significant declines. Some algorithmic trading firms and traders enter the market at these stages, while others may be betting that Saylor and Strategie have a bigger plan.
