Bitcoin $2.5B Liquidation Nears MicroStrategy’s Breakeven — Saylor’s BTC Position Under Pressure
Bitcoin plunged below $80,000 in a rapid sell-off that wiped out roughly $2.51 billion in leveraged crypto positions — one of the largest liquidation events on record. On-chain data from Arkham Intelligence shows major outflows to exchanges ahead of and during the crash: Kraken (~17,030 BTC), Binance (~12,147 BTC), and Coinbase (~9,093 BTC) were among the largest sellers. Other notable transfers included Wintermute (~3,491 BTC) and wallets labeled Trump Insider and Bybit (2,543 BTC and 2,471 BTC).
The cascade pushed BTC to trade around $78,300–78,500 at time of reporting. That drop tightened the margin on MicroStrategy’s (Strategy) Bitcoin holdings: the company holds 712,647 BTC accumulated at an average cost of $76,037. At current prices Strategy sits roughly 1.8% above its cost basis — a further ~3% decline from then-current levels would mark unrealized losses for the firm. Strategy’s stash is now valued at roughly $55.7 billion versus about $81 billion at Bitcoin’s prior peak.
Key takeaways for traders: this was a high-leverage liquidation event causing intense short-term volatility and heavy exchange inflows. MicroStrategy’s heavy corporate exposure to BTC creates potential for narrative-driven selling if prices dip below its breakeven level. Watch exchange flows, liquidation heatmaps and institutional wallet movements for further downside risk. Short-term traders should expect elevated volatility and widened bid-ask spreads; longer-term investors should monitor whether this event triggers broader forced selling by large holders or merely a transient capitulation.
Bearish
The news points to a bearish near-term outlook. A $2.51B leveraged liquidation indicates extreme short-term deleveraging and shows how concentrated selling (large exchange inflows from Kraken, Binance, Coinbase and major wallets) can cascade into violent price moves. MicroStrategy’s large corporate position (712,647 BTC) sitting only ~1.8% above its average cost increases the risk of narrative-driven selling and potential balance-sheet pressure if BTC drops another ~3% into unrealized loss territory. Historically, similar large liquidation events (e.g., FTX fallout, Covid crash) led to heightened volatility and short-term bearish pressure until leverage was absorbed and realized losses cleared. For traders: expect continued elevated intraday volatility, larger liquidation clusters if price tests lower support, and possible spot selling from institutions defending liquidity needs. Over the medium-to-long term, impact may normalize if major holders hold through volatility, but in the near term the market tone is bearish.