Bitcoin prices continued to plunge to a six-month low below $96,000 after losing over $10,000 in three days, with selling pressure occurring without any clear macro factors. The drop came despite improved sentiment following the end of the US government shutdown.
Speculation that Strategy was selling its Bitcoin holdings sparked initial panic in the market, after a viral claim on X was spread by influential accounts. However, an investigation by the crypto community and data from Lookonchain showed that the move was merely an internal transaction worth around $5.8 billion.
Strategy previously insisted that it would not sell BTC, and has been consistently buying for over a year, bringing its holdings to over 641,000 BTC. While the rumors proved to be false, the market remains weak with volatility rising.
Bitcoin continued to fall, despite briefly rising to $104,000 after new legislation to end the US government shutdown was signed into law. Prices then fell back below the psychological $100,000 level and moved lower throughout the day.
Liquidity across the crypto market rose to $1.2 billion, with over 260,000 traders affected. Sentiment remains fragile, with investors wary of short-term selling pressure and heightened market volatility.
