Bitcoin steadies after US$60,000 breach as Saylor hints at buying

BITCOIN steadied itself after dropping below the key threshold of US$60,000, as Strategy chairman Michael Saylor hinted at further purchases of the token.

The original cryptocurrency climbed as much as 3.8 per cent to nearly US$64,200 on Monday, before paring slightly to change hands at around US$63,400 in early morning trading in New York. Ether, the second-largest token, rose as much as 5.6 per cent at around US$1,720.

The recovery comes after Bitcoin had slumped roughly 7 per cent to US$59,101 on Friday, falling below US$60,000 for the first time since Donald Trump won the White House for a second time in 2024.

Strategy’s earlier disclosure of a small Bitcoin sale — its first since 2022 — also contributed to the token’s 18 per cent decline last week, undermining confidence in the company’s model of hoarding the token in perpetuity.

Saylor suggested in a social media post over the weekend that Strategy may announce further Bitcoin purchases, helping to soothe trader nerves.

News of Israel’s retaliatory attack on Iran on Monday also helped alleviate pressure on Bitcoin and other risk assets, as the war continues to plague the economic outlook. Stocks and bonds across Europe and Asia dropped on the move, while oil prices rose. 

“While global stock markets have pulled back as investors reduced risk heading into the weekend, Bitcoin’s reaction has been comparatively muted, particularly considering its reputation as a high-beta risk asset,” said Daniela Hathorn, senior market analyst at Capital.com. 

The token’s recent correction likely helped shield it from the turbulence rocking equity markets. Stocks were coming off fresh highs and “arguably had more positioning to unwind once sentiment deteriorated,” she added.

Richard Galvin, executive chairman at crypto investment firm DACM, said the market had looked oversold.

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“The key short-term determinant of crypto market direction will likely be Strategy’s 8-K filing in the US morning, which will make it clearer what the company has done over the last few days,” Galvin said, referring to a filing that Strategy typically makes with the US Securities and Exchange Commission at the start of each week.

‘Incredibly shaky’

Still, investors don’t appear convinced that the turnaround in Bitcoin’s price is durable. “We reduced our portfolio across the board and increased our cash levels to the highest they have been in two years,” Galvin added.

Bitcoin has lost about half its value since reaching a peak above US$126,000 in October last year.

The token’s decline has been fuelled by a combination of investors pulling money from Bitcoin-tied exchange-traded funds, renewed geopolitical tensions and growing concerns about the durability of Strategy and other digital-asset treasuries, one of the market’s most important sources of demand.

“Sentiment is incredibly shaky,” said Pratik Kala, a portfolio manager at digital-asset hedge fund Apollo Crypto, adding that much will depend on what Strategy does next. BLOOMBERG