Bitcoin (COIN:BTCUSD) declined on Monday, deepening a selloff that has now entered its fourth consecutive week, as ongoing uncertainty around U.S. interest rates continues to dampen appetite for riskier assets.
The largest cryptocurrency by market value retreated after briefly climbing above $70,000 over the weekend. By 00:58 ET, Bitcoin was down 2.7% at $68,409.7.
Strategy says debt secure even if Bitcoin drops to $8,000
Strategy (NASDAQ:MSTR) — the biggest corporate holder of Bitcoin — said Sunday it would remain able to meet its debt commitments even in the event of a sharp collapse in the token’s price.
In a social media statement, the company said it can “withstand a drawdown in $BTC price to $8K and still have sufficient assets to fully cover our debt.”
Strategy currently owns 714,644 Bitcoin, accumulated through a combination of equity issuance and long-term borrowing. The company, led by prominent Bitcoin advocate Michael Saylor, has continued adding to its holdings in recent weeks despite persistent market weakness.
Bitcoin has now lost roughly half its value since peaking near $126,000 in October. The cryptocurrency has been at the forefront of declines in speculative assets, as uncertainty over the Federal Reserve’s rate path has prompted investors to scale back exposure to higher-risk trades.
The extended slide has fueled speculation that Strategy could eventually be forced to liquidate part of its position to service its obligations, although Saylor has repeatedly rejected that scenario.
Earlier in February, Strategy reported a $12.4 billion loss for the December quarter, compared with a $670.8 million loss in the same period a year earlier. Aside from its substantial Bitcoin exposure, the company generates relatively limited operating revenue.
Altcoins follow Bitcoin lower
The broader crypto market also traded lower, largely mirroring Bitcoin’s ongoing weakness.
Ether, the second-largest cryptocurrency, dropped 6.1% to $1,958.63, while XRP fell 7.7% to $1.4575.
BNB declined around 4%, with Solana and Cardano sliding 5.4% and 6.2%, respectively.
Among meme tokens, Dogecoin tumbled 11.4%, while $TRUMP lost 2.4%.
Crypto sentiment has remained fragile since October, as both retail and institutional inflows have slowed markedly. At the same time, a surge in gold prices amid strong investor demand for precious metals has drawn capital away from digital assets, as market participants shift toward tangible safe-haven holdings.