Key Insights
- •Strategy (formerly MicroStrategy) moved 58,915 BTC to new wallets, stirring speculation of a selloff.
- •Michael Saylor took to X to debunk the rumor of selling BTC holdings to Coinbase.
- •MSTR stock fell 6% amid selling rumors.
- •Bitcoin price slipped under $95K amid a market crash.
Rumors spread in the crypto market after on-chain data highlighted massive Bitcoin outflows from the Strategy wallet. Executive chairman Michael Saylor refuted the rumors and recommended to “hodl” amid the market meltdown.
BTC price crashed below $95,000 for the first time since May. This comes following broader market stress from ETF outflows, reduced Fed rate cut expectations, and crypto options expiry.
Rumor: Strategy Sold 58,915 BTC Amid Crypto Market Crash
Bitcoin treasury firm Strategy (formerly MicroStrategy) moved 58,915 BTC to new wallets, according to on-chain platform Arkham data. This stirred a panic in the crypto community.
Rumors started spreading in the community that Strategy has started dumping to Coinbase. As a result, Bitcoin price fell to a new low of $94,563.
On-chain expert Lookonchain confirmed that BTC transfers were likely related to custody purposes. Others also slammed people for spreading false rumors.
IT Tech revealed that Arkham data showed wallet rebalancing rather than distribution. "Of course, the market is reacting, and the bots are selling."
Michael Saylor of Strategy Debunks Rumors
Michael Saylor took to X and cleared the air about the rumor of selling BTC holdings to Coinbase. He posted an image of himself fighting waves of water similar to the current scenario in the crypto market.
He said “HODL” to calm the panic in the crypto community. However, Bitcoin price just slightly bounced as other headwinds remain.
Arkham data also confirmed that MicroStrategy has sent over 107,319 BTC to Fidelity Custody, Coinbase Custody, and NYDIG Custody.
Traders were anticipating a deeper fall after JPMorgan saw support at $94,000. However, these periods of heavy selling pressure often create prime trading opportunities.
Bloomberg commodity strategist Mike McGlone said Strategy stock is getting a bit oversold in a bear market that’s leading Bitcoin.
He noted that the S&P 500 was 10% above its 200-day moving average, with 120-day volatility hovering near multiyear lows.
MSTR stock was down 6% in premarket trading hours. The stock fell 7.15% to $208.54 on Thursday.
Bitcoin Price Slips Further to $94K
More than 41K BTC options worth $4 billion in notional value expired today on Deribit, with a put-call ratio of 0.7. The max pain price was $105K.
Bitcoin price saw no rebound amid FUD, with the price trading at $94,681. The 24-hour low and high are $94,525 and $103,285, respectively.
Trading volume has increased by 67% as traders move to dump their holdings to exchanges. Analysts expect a further drop if BTC fails to recover above $98K this week.
CoinGlass data showed mixed sentiment in the derivatives market. At the time of writing, the total BTC futures open interest dropped 1% to $66.26 billion in the last 24 hours.