Bitcoin (COIN:BTCUSD) extended its decline on Tuesday, giving back more of last week’s gains as optimism surrounding progress to end the U.S. government shutdown and renewed corporate buying failed to lift sentiment.
The world’s largest cryptocurrency dropped 0.9% to $104,180 by 00:25 ET (05:25 GMT).
Bitcoin remains muted despite shutdown progress and fresh Strategy purchases
Bitcoin weakened even as global risk appetite improved after the U.S. Senate approved a spending bill aimed at reopening the government, ending the longest shutdown in U.S. history. The bill now heads to the House of Representatives, where the Republican majority has signaled its support.
However, the progress provided limited momentum for digital assets, with investors preferring equities — especially tech stocks — as optimism spread across broader markets.
Bitcoin also failed to find support from Strategy Inc (NASDAQ:MSTR), which revealed that it had purchased an additional 487 bitcoins this week, bringing its total holdings to 641,692 coins. Despite the accumulation, prices remained under pressure.
Short seller Jim Chanos exits Strategy short position
Veteran short seller Jim Chanos, best known for betting against Enron before its collapse in 2001, said over the weekend that he had closed his short position on Strategy, as the company’s stock price fell to levels roughly matching the value of its Bitcoin assets.
Chanos explained that his bearish stance was initially based on Strategy trading at a steep premium to its Bitcoin holdings. Following a sharp drop in the stock this year, that premium has largely evaporated.
He noted on social media that Strategy’s multiple of Enterprise Value to Bitcoin Net Asset Value (mNAV) had dropped to 1.23x from a peak of 2.50x, when he first disclosed the position.
Chanos added that there could still be “room for more value compression in Strategy.”
So far in 2025, Strategy’s Class A shares are down 20.4%, as investors increasingly question the company’s elevated valuation relative to its Bitcoin reserves.
SoFi enters crypto trading, becoming the first U.S. bank to offer digital assets
In a separate development, SoFi announced Tuesday that it will launch cryptocurrency trading services for its customers, marking a major step by a traditional U.S. bank into the digital asset space.
The fintech company said its users will be able to buy, sell, and hold leading cryptocurrencies such as Bitcoin, Ethereum, and Solana. Growing retail participation and institutional adoption continue to fuel activity across crypto exchanges and brokers.
“SoFi is the first bank in the U.S. to offer crypto trading and investing,” said CEO Anthony Noto. “The product we’re launching today is for retail members, but institutional access is right around the corner.”
Altcoins trade mixed alongside Bitcoin
Broader cryptocurrency markets traded mostly lower, mirroring Bitcoin’s weakness and the lack of fresh catalysts for the sector.
Ethereum slipped 1.9% to $3,514.57, while XRP fell 3.3% to $2.44. Solana and Cardano dropped 3.2% and 2%, respectively, and BNB edged down 1.3%.
Among meme tokens, both Dogecoin and $TRUMP declined by more than 2% each.