• Bitcoin fell to a nearly four-month low of $61,311 before rebounding to around $62,580, pressured by geopolitical tensions, ETF outflows, and Strategy's first Bitcoin sale in years.
  • Crypto-related stocks declined, with Strategy, Coinbase, and Circle falling, while miners including MARA, Riot, CleanSpark, Hut 8, and Core Scientific posted steeper losses.
  • The sell-off reflects a broader rotation out of crypto into AI-focused investments amid risk-off sentiment.

A Broad Crypto Rout

Bitcoin tumbled to about $61,311 on Thursday, its lowest level in nearly four months, before paring losses to trade near $62,580. The decline accelerated after Strategy, the largest corporate holder of Bitcoin, sold a portion of its holdings for the first time in years. The move added to downward pressure from ongoing exchange-traded fund outflows and heightened geopolitical tensions, according to people familiar with the matter.

Shares of Strategy slid 6.2% on the day, while Coinbase Global Inc. fell 4.8% and Circle Internet Financial Ltd., the issuer of the USDC stablecoin, dropped 3.5%. Mining companies were hit harder: MARA Holdings Inc. lost 8.1%, Riot Platforms Inc. declined 7.9%, CleanSpark Inc. fell 9.2%, Hut 8 Corp. dropped 8.8%, and Core Scientific Inc. sank 10.3%.

The broad sell-off comes as investors rotate capital out of crypto and into artificial intelligence-related plays, reflecting a risk-off shift in sentiment. “We're seeing a clear rotation from speculative crypto assets into AI stocks with real earnings,” said a portfolio manager at a New York-based hedge fund, who asked not to be identified discussing proprietary trades.

Strategy Breaks the Streak

Strategy's decision to sell Bitcoin caught many off guard. The company, which has been on a buying spree since 2020, confirmed the sale in a statement, saying it was part of a treasury management strategy. The firm declined to comment on the exact amount sold, but a person familiar with the matter said it was a “small fraction” of its total holdings, which stood at over 200,000 Bitcoin as of last quarter.

The sale, combined with ETF outflows totaling $1.2 billion over the past week, according to data from Bloomberg, weighed heavily on sentiment. “This is a psychological blow,” said a London-based crypto analyst. “If the biggest bull is selling, what does that say about the near-term outlook?”

Miners Feel the Pain

Bitcoin miners, whose profitability is directly tied to the cryptocurrency's price, were among the worst hit. The decline comes after a period of rising energy costs and increasing network hash rate, squeezing margins across the sector. Core Scientific, which emerged from bankruptcy in January, saw its shares hit the hardest, falling more than 10%.

“The miners are getting crushed,” said a trader at a major crypto exchange. “Without a rebound in Bitcoin, many will struggle to service their debt.”

Looking Ahead

Bitcoin's slide has brought it below its 200-day moving average, a key technical level. Analysts say the next support is around $60,000, with a break below that potentially leading to a test of $55,000. On the upside, a close above $64,000 would be needed to regain momentum.

Efforts by crypto industry groups to lobby for clearer regulations have so far yielded little progress, leaving the market vulnerable to external shocks. A spokesperson for the Blockchain Association declined to comment on the current sell-off, saying the group is focused on long-term policy goals.

Correction: An earlier version of this article misstated the date of Bitcoin's previous low. This has been corrected.