Bitcoin Slides Toward $95K on MicroStrategy Sell Rumors
Bitcoin extended its decline to a six-month low near $95,500 after dropping over $10,000 in three days. The sell-off was fueled by rumors that MicroStrategy had offloaded $1 billion worth of BTC, a claim stemming from an obscure X account and amplified by prominent observers. Lookonchain later clarified that MicroStrategy moved 58,915 BTC (about $5.77 billion) internally for custody, not sale. Co-founder Michael Saylor has reiterated the firm’s commitment to accumulating Bitcoin, currently holding over 641,000 BTC. The downturn has triggered roughly $1.2 billion in liquidations, impacting over 260,000 traders.
Bearish
The rumor of a major sell-off by MicroStrategy, even though later debunked, intensified selling pressure and triggered significant liquidations as traders reacted to perceived large-scale outflows. Historical precedent shows that market sentiment around large BTC transfers often leads to volatility, as seen during past on-chain shakeouts. In the short term, uncertainty and forced position closures may prolong downward pressure, while long-term effects are limited given MicroStrategy’s continued accumulation strategy and confirmation of a custody move rather than a sale. However, the event underscores the sensitivity of Bitcoin markets to large on-chain activities and rumor-driven sentiment shifts.