Bitcoin (BTC) fell to $77,000 on Sunday, its lowest level since April 2025, as liquidations reached $1.6 billion and on-chain data showed capital inflows had dried up.
The decline pushed Strategy's 712,647 bitcoin holdings briefly below the company's average purchase cost of $76,037 per coin.
The total cryptocurrency market capitalization shed roughly $111 billion in 24 hours, according to CoinGecko data. Ethereum declined 17% and Solana dropped over 17%, indicating broad selling across major tokens rather than Bitcoin-specific pressure.
Bitcoin has now fallen approximately 40% from its October 2025 all-time high of $126,000. The selloff extended a decline that began Thursday when Bitcoin was rejected at $90,000 before falling nearly $10,000 within hours.
What Happened
CoinGlass data shows approximately $1.6 billion in leveraged positions were liquidated over 24 hours, concentrated in bitcoin and ether long positions.
Thin weekend trading volumes amplified price moves as liquidity dried up during the selloff.
Geopolitical developments added pressure. An explosion at Iran's Bandar Abbas port and a brief U.S. government shutdown pushed investors away from risk assets during Saturday's trading session. These events compounded selling already underway from earlier in the week.
Read also: Bitcoin Falls To $80,000, Breaking A New Yearly Low
Why It Matters
CryptoQuant CEO Ki Young Ju noted that Bitcoin's realized capitalization has flatlined after approximately two and a half years of growth, indicating new capital has stopped entering the market.
When market capitalization falls while realized cap remains static, on-chain data historically correlates with bearish conditions.
Ju attributed the absence of a deeper cycle-style crash to structural changes in how Bitcoin is held. Institutional treasury companies like Strategy and spot ETF vehicles have eliminated the traditional pattern where whale selling triggered retail-driven crashes. He expects prolonged sideways consolidation rather than the 50%-plus corrections seen in previous bear markets.
Strategy's position underwater does not create immediate solvency risk. The company's 712,647 bitcoin holdings remain unencumbered, meaning none are pledged as collateral. However, the stock now trades at a discount to its bitcoin holdings, making future share issuance less attractive and slowing the company's ability to accumulate additional bitcoin without shareholder dilution.
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