The encrypted market is undergoing a new round of bloodshed! Bitcoin breaks the 70,000 mark, Strategy (MSTR.US) Q4 net loss reaches 1.24 billion US dollars.

Against the backdrop of continued pressure on global technology stocks, cryptocurrency assets are facing a new round of concentrated selling. On Thursday, the price of bitcoin fell below the $70,000 mark, dropping more than 13% in the past 24 hours, hitting a low of $62,333. Ethereum also fell by 11% to $1,888, and the overall volatility in the cryptocurrency market has significantly intensified. Market participants point out that this round of cryptocurrency declines is highly related to the weakening performance of the technology sector in the US stock market. Due to adjustments in AI-related stock weights, the Nasdaq Composite Index has been declining continuously on Wednesday and Thursday. Companies such as Alphabet (GOOG.US, GOOGL.US) and Qualcomm (QCOM.US) have triggered investor concerns about the return on investment and sustainability of AI valuations, leading to a noticeable decrease in risk appetite. This sentiment has quickly spilled over to the digital assets sector, which has already been underperforming since the beginning of the year. Taking a longer-term view, since reaching a historical high of about $126,273 on October 6, 2025, bitcoin has seen a cumulative decline of nearly 48%. Stifel strategist Barry Bannister pointed out in a recent report that, based on bear market patterns over the past 15 years, bitcoin may see a potential downside to around $38,000 this year, meaning a possible retreat of up to 70% from its historical high. Wenny Cai, the Chief Operating Officer of SynFutures, stated that the AI-driven investment frenzy from last year is no longer able to provide a "buffer" for risk assets, and funds are rapidly flowing into traditional safe-haven assets. Gold has once again become the most intuitive manifestation of risk aversion sentiment, while cryptocurrencies have not received the same level of buying support. On the policy front, the US Treasury Secretary, Janet Yellen, stated in a congressional hearing that the Treasury Department neither has the power to "bail out" bitcoin nor can it instruct Bank of America Corp to purchase the asset. Meanwhile, prominent short-seller Michael Burry warned in his Substack article that bitcoin lacks a "credible use case" to prevent further declines, further exacerbating market pessimism. Amid the significant retracement in bitcoin prices, the world's largest enterprise-level bitcoin holder, MicroStrategy Inc. (MSTR.US), announced its fourth-quarter performance for the 2025 fiscal year on February 5. The company disclosed that as of February 1, 2026, its bitcoin holdings had increased to 713,502 coins, with a total cost of approximately $54.26 billion and an average holding cost of $76,052 per coin. Despite achieving a 22.8% BTC Yield in the full year of 2025 and raising $25.3 billion in the capital markets, the company recorded an unrealized loss of $17.4 billion due to fluctuations in the fair value of digital assets in the fourth quarter, leading to a net loss of $12.4 billion for the quarter. The management emphasized that MicroStrategy is diversifying its volatility risk through its "digital credit" platform. The company's flagship preferred stock, STRC, has expanded to $3.4 billion, and by implementing a variable dividend mechanism, the stock price is maintained near its nominal value of $100. At the same time, the company has established a $22.5 billion US dollar reserve to cover approximately 2.5 years of preferred stock dividends and interest expenses. Executive Chairman Michael Saylor stated that the company has built a "digital fortress" centered on bitcoin and will continue to address the high volatility in the cryptocurrency market through long-term holding and financial structure innovation.