**Bitcoin Price Plummets Below $87,000 Amid $200 Million Liquidation**
Bitcoin’s value has sharply declined, falling below $87,000 as a significant wave of liquidations impacted the cryptocurrency market. In just one hour, approximately $200 million in leveraged positions were wiped out, according to data from Coinglass. As of the latest update, Bitcoin is trading at $86,751, reflecting a 2% decrease over the past 24 hours. The trading volume reached around $38 billion, with Bitcoin down 4% from its recent seven-day peak of nearly $89,935, and hovering just above its weekly low of approximately $87,152.
Currently, Bitcoin’s circulating supply stands at 19.96 million BTC, with a capped maximum of 21 million, resulting in a market capitalization of about $1.73 trillion, which is also down 2% for the day. This latest downturn follows a challenging weekend for Bitcoin, which saw its price drop from the low $92,000 range on Thursday to weekend lows near $87,000. The decline was exacerbated by thin liquidity and ongoing selling pressure, which dampened risk appetite among traders. The decisive drop below the $90,000 mark occurred during typically low-volume Sunday trading, increasing volatility as traders adopted a cautious stance ahead of a busy week filled with U.S. economic data and central bank events.
In a notable development, Strategy, the largest publicly traded holder of Bitcoin, made headlines by acquiring nearly $1 billion worth of Bitcoin last week, purchasing 10,645 BTC at an average price of $92,098 per coin. This acquisition marks the company’s second consecutive large purchase, bringing its total holdings to 671,268 BTC, acquired for a total of $50.33 billion at an average cost of $74,972 each. The funding for this purchase primarily came from equity issuance, raising $888.2 million through common stock sales, despite ongoing concerns from shareholders regarding dilution.
Historically, the company had limited its weekly purchases due to fundraising constraints, but Executive Chairman Michael Saylor has recently ramped up buying activity, indicating renewed confidence in Bitcoin despite market volatility. Additionally, Strategy plans to remain listed in the Nasdaq 100 and has opposed MSCI’s proposed digital asset threshold, which could potentially exclude Bitcoin treasury firms from key benchmarks. Critics argue that Strategy is increasingly resembling a Bitcoin investment vehicle rather than a traditional software company, yet Saylor remains steadfast in his approach. The firm has reported a year-to-date Bitcoin yield of 24.9%, highlighting its commitment to accumulating Bitcoin regardless of short-term market fluctuations.
As of the latest update, Bitcoin is trading at $86,770.
**FAQ**
**What caused Bitcoin’s recent price drop?**
The recent decline in Bitcoin’s price was primarily driven by a wave of liquidations in the crypto market, resulting in approximately $200 million in leveraged positions being liquidated within an hour, compounded by thin liquidity and persistent selling pressure.