The crypto market is hit by a new round of bloodbath! Bitcoin breaks the 70,000 mark Strategy(MSTR.US)Q4 net loss reaches $12.4 billion

Amid ongoing pressure on global tech stocks, cryptocurrencies are experiencing a new round of concentrated selling. On Thursday, Bitcoin fell below the $70,000 mark, dropping over 13% in the past 24 hours, with a low of $62,333. Ethereum also declined 11% to $1,888, and overall market volatility in the crypto sector has significantly increased.

Market analysts point out that this decline in cryptocurrencies is highly correlated with weakness in the U.S. tech sector. Due to adjustments in AI-related heavyweight stocks, the Nasdaq Composite index fell for two consecutive days on Wednesday and Thursday. Earnings reports from companies like Alphabet (GOOG.US, GOOGL.US) and Qualcomm (QCOM.US) have raised concerns among investors about the sustainability of AI investment returns and valuations, leading to a clear cooling of risk appetite. This sentiment quickly spilled over into the digital asset space, which has already been underperforming since the beginning of the year.

Looking at a longer-term perspective, since Bitcoin reached a historical high of approximately $126,273 on October 6, 2025, it has declined by nearly 48%. Stifel strategist Barry Bannister noted in a recent report that, based on past bear market patterns over the last 15 years, Bitcoin could potentially drop to around $38,000 this year, representing a decline of up to 70% from its all-time high. Wenny Cai, COO of SynFutures, stated that the AI-driven investment boom of last year no longer provides a “buffer” for risk assets. Capital is accelerating into traditional safe-haven assets, with gold reemerging as the most direct reflection of risk aversion, while cryptocurrencies have not received similar buying support.

On the policy front, there has been little support for the market. U.S. Treasury Secretary Janet Yellen explicitly stated at a congressional hearing that the Treasury has neither the authority to “rescue” Bitcoin nor the ability to instruct U.S. banks to purchase the asset. Meanwhile, “Big Short” investor Michael Burry warned in a Substack article that Bitcoin lacks sufficient “organic use cases” to prevent further declines, further fueling market pessimism.

Amid the sharp correction in Bitcoin prices, the world’s largest enterprise Bitcoin holder, Strategy Inc. (MSTR.US), announced its Q4 2025 earnings 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 cost basis of $76,052 per Bitcoin. Despite achieving a 22.8% BTC yield for 2025 and raising $25.3 billion in capital markets, the company recorded an unrealized loss of $17.4 billion in Q4 due to fair value changes in digital assets, resulting in a quarterly net loss of $12.4 billion.

Management emphasized that Strategy is diversifying risk through its “Digital Credit” platform. The company’s flagship preferred stock, STRC, has grown to $3.4 billion in size, and a variable dividend mechanism helps keep the stock price near a nominal value of around $100. Additionally, the company has established a $2.25 billion USD reserve to cover approximately 2.5 years of preferred stock dividends and interest payments. Executive Chairman Michael Saylor stated that the company has built a “digital fortress” centered on Bitcoin and will continue to adopt long-term holding and financial structural innovations to navigate the high volatility environment of the crypto market.