Key Highlights
- Strategy has announced the acquisition of 850 Bitcoin at worth of $99.7 million
- This acquisition comes amid a sharp crash in BTC value, dropping below $113,000
On September 22, the leading Bitcoin holding company owned by Michael Saylor, Strategy, increased its Bitcoin stake by acquiring an additional 850 Bitcoin for approximately $99.7 million.
With this acquisition, Strategy is now holding 639,835 Bitcoin, which is worth around $47.33 billion.
While BTC is going through a consolidation phase, Michael Saylor believes that this is a bullish sign. “If you zoom out and look at the one-year chart, Bitcoin is up 99%. The volatility is coming out of the asset — that’s a really good sign,” he said.
Bitcoin Crashes Below $113,000
According to CoinMarketCap, Bitcoin (BTC) has plunged below $113,000 with a 2.5% drop in the daily chart. This drop in BTC has also triggered correlation in other cryptocurrencies like Ethereum (ETH), which plunged by 6.78%.
At the time of writing, the total market capitalization of BTC is around $2.25 trillion.
Bitcoin, the world’s leading cryptocurrency, saw its price decline over the weekend, falling below $113,000 after recently approaching the $118,000 level. The drop represents a normal market correction within an ongoing bull market rather than a sign of fundamental problems, according to market analysts.
The cryptocurrency decreased by approximately 2.5-3% over a 24-hour period, reaching as low as $112,000. This price movement triggered the automatic closure of over $1.7 billion in leveraged trading positions across cryptocurrency markets, with Bitcoin positions accounting for between $275-500 million of that total.
On Sunday night, the overall value of the cryptocurrency market dropped by around $33 billion, according to CoinMarketCap. In the past 24 hours, about $1.69 billion worth of crypto derivatives positions were liquidated.
Leveraged trading allows investors to borrow money to amplify their bets, but it also increases risk significantly when prices move against their positions.
Market experts attribute the decline to several factors rather than any single dramatic event. Technically, Bitcoin failed to maintain its position above key resistance levels between $115,000 and $117,000.
When the price fell below these psychological and technical support levels, it triggered automated selling programs and stop-loss orders, accelerating the downward movement. This effect was amplified by typically lower trading volumes during weekend periods, particularly during Asian and European trading hours.
The recent price action also reflects market adjustments following the U.S. Federal Reserve’s interest rate decision last week.
While the central bank’s rate cut was generally viewed as positive for risk assets like cryptocurrencies, some traders had become overly optimistic in their positioning. When the expected rapid price increase didn’t materialize, many of these leveraged positions were forced to close, contributing to the selling pressure.
Despite the short-term volatility, important market indicators suggest this is a normal correction rather than a trend reversal. Long-term Bitcoin holders, including major institutional investors, have shown little reaction to the price drop and continue holding their positions.
The Fear & Greed Index, which measures market sentiment, remains in neutral territory rather than indicating panic selling.
Market analysts generally view this type of price movement as healthy within a longer-term upward trend. Historical patterns suggest that Bitcoin often experiences corrections during bull markets before continuing its upward trajectory.
Some analysts point to potential price targets between $120,000 and $165,000 if Bitcoin can maintain support around current levels, though they caution that a break below $110,000 could lead to further declines toward $100,000.
For everyday cryptocurrency investors, this price movement serves as a reminder of the market’s inherent volatility. Experts recommend that investors maintain perspective during such corrections, focusing on long-term fundamentals rather than short-term price fluctuations.
They also caution against using excessive leverage, which can magnify losses during periods of market volatility.
As the cryptocurrency market continues to mature, these types of corrections are becoming more understood as normal market behavior rather than cause for alarm.
The underlying adoption trends, including continued institutional investment and growing integration with traditional finance, suggest that the long-term outlook for Bitcoin remains positive despite short-term price movements.