Key Moments:
- Bitcoin climbed 5% to $66,144.7 in Asian trading after touching a 16-month low of $60,187.0.
- Bitcoin was on track for a roughly 16% weekly loss, marking a third consecutive week in negative territory.
- Strategy Inc (NASDAQ: MSTR) reported a fourth-quarter loss of $12.4 billion, driven largely by weakness in Bitcoin prices.
Risk-Off Sentiment Pressures Bitcoin Despite Intraday Recovery
Bitcoin showed signs of stabilization in Asian trading on Friday, lifting from a 16-month low as prices recovered part of the recent slide. The move higher came against a backdrop of broad risk aversion tied to uncertainty around U.S. monetary policy, which has weighed heavily on cryptocurrencies.
The token remained under pressure after major corporate holder Strategy Inc (NASDAQ: MSTR) released quarterly results showing a significantly larger loss, largely attributed to the decline in Bitcoin prices.
By 01:48 ET (06:48 GMT), Bitcoin was up 5% at $66,144.7, rebounding from an earlier low of $60,187.0, its weakest level in 16 months.
Despite the intraday bounce, the world’s largest cryptocurrency has shed more than 50% from its all-time high reached in October and has given back all gains recorded since Trump’s election victory in late-2024.
Weekly Performance: Third Consecutive Decline for Bitcoin
Bitcoin was on course for its third straight weekly decline, down nearly 16% for the week.
Recent weeks have seen investors pull back sharply from speculative and higher-risk assets, with selling accelerating after Trump nominated Kevin Warsh as his choice for the next Federal Reserve chair.
Warsh has been perceived as less dovish, in part due to his opposition to the Fed’s asset purchase programs. Such a stance raises expectations that the central bank could maintain a leaner balance sheet over time, a prospect viewed as tightening financial conditions and weighing on speculative instruments, including cryptocurrencies.
Following Warsh’s nomination, risk-driven assets broadly came under pressure. A sustained selloff in U.S. technology stocks – a segment that crypto prices often move in tandem with – further dragged sentiment across digital assets.
Strategy Inc’s Bitcoin-Linked Losses Deepen
Strategy Inc (NASDAQ: MSTR) reported a sharply wider fourth-quarter loss on Thursday, underscoring the impact of Bitcoin’s downturn on its balance sheet.
| Metric | Latest Quarter | Prior Year |
|---|---|---|
| Net loss | $12.4 billion | $670.8 million |
The company’s loss expanded to $12.4 billion from $670.8 million a year earlier, driven primarily by persistent weakness in Bitcoin prices since October. The cryptocurrency has struggled to regain momentum following a flash crash in late-October that unsettled markets.
As of February 1, Strategy held 713,502 Bitcoins at an average cost of $54.26 billion, or $76,052 per Bitcoin. With spot prices now below this average purchase level, investors have become increasingly concerned that Strategy might ultimately need to liquidate part of its holdings to service its debt.
The firm, led by outspoken Bitcoin advocate Michael Saylor, has financed its extensive Bitcoin accumulation using a combination of debt instruments and new equity offerings.
Altcoins Recover Intraday but Face Heavy Weekly Drawdowns
Beyond Bitcoin, major altcoins staged a modest rebound alongside the broader market, although they continued to reflect substantial losses over the past week.
| Token | Recent Move | Weekly Performance |
|---|---|---|
| Ether (World no.2 crypto) | Up nearly 5% to $1,916.62 | Down about 22% this week |
| XRP | Up 7% | Down about 20% this week |
| BNB | Up 3% | Down about 20% this week |
| Solana | – | Headed for a 24% weekly loss |
| Cardano | – | Down 13.5% this week |
| Dogecoin | – | Down 13% this week |
| $TRUMP | – | Down about 23% this week |
Ether, the second-largest cryptocurrency by market value, rose nearly 5% to $1,916.62, yet remained lower by about 22% for the week. XRP and BNB advanced 7% and 3%, respectively, but were each still down roughly 20% over the same period.
Solana was on track for a 24% weekly drop, while Cardano had fallen 13.5%.
In the memecoin segment, Dogecoin was down 13% for the week, and $TRUMP had declined about 23%.
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