Bitcoin’s price fell over 13% during the weekend, briefly pushing MicroStrategy‘s massive holdings into a temporary unrealized loss. The company’s executive chairman, Michael Saylor, hinted at further Bitcoin purchases despite the market downturn. Broader cryptocurrency sentiment also weakened amid macroeconomic uncertainty following a potential shift in U.S. Federal Reserve leadership.
Bitcoin experienced a sudden decline of more than 13% over the weekend. This drop temporarily pushed the price below MicroStrategy‘s average acquisition cost of approximately $76,040.
The decline caused the company to record temporary unrealized losses on its extensive holdings. MicroStrategy holds more than 712,647 Bitcoin, valued at roughly $55 billion.
Michael Saylor, the company’s co-founder and executive chairman, signaled continued confidence. He posted “More Orange” on X, which is widely interpreted as a hint at further Bitcoin acquisitions.
If confirmed, this would be the company’s fifth Bitcoin purchase this year. Its largest purchase occurred on January 20, when it bought 22,305 Bitcoin.
Bitcoin later recovered to around $76,765, remaining above the company’s cost basis. The event demonstrated a common pattern of sharp declines followed by rapid recoveries in the cryptocurrency market.
The sell-off occurred amidst broader financial market turmoil linked to potential Federal Reserve leadership changes. Former Fed governor Kevin Warsh, perceived as more hawkish, was reportedly selected as the next chair by former President Donald Trump.
This announcement triggered volatility across risk assets like gold, silver, and equities. Bitcoin reacted to shifting liquidity conditions and interest rate expectations as it typically does.
Overall cryptocurrency market sentiment weakened significantly as a result. The Crypto Fear & Greed Index dropped to 14 out of 100, indicating extreme fear.
Former Binance CEO Changpeng “CZ” Zhao expressed decreased confidence in his Bitcoin super-cycle prediction. Historical data suggests such periods of negative sentiment often precede market recoveries.
