Bitcoin Crashes Below $92K! MicroStrategy Pauses Buying—Why?

The crypto market experienced a sharp sell-off, with Bitcoin (BTC) falling to $91,178 before rebounding above $98,000. 

At press time, Bitcoin was trading at $98,494.73, reflecting a 0.57% decline in the last 24 hours and a 2.56% drop over the past week.

The sell-off led to liquidations of over $2.28 billion in derivatives markets, according to data from CoinGlass. The majority of these liquidations—$1.89 billion—came from bullish traders who were forced to exit their positions. 

Market volatility has been a key factor in the recent price movements, with Bitcoin’s price briefly recovering to $99,397.65 after touching its daily low.

MicroStrategy Holds Back on Bitcoin Purchases

MicroStrategy, the largest corporate holder of Bitcoin, surprised the market by not adding to its Bitcoin holdings last week. The company, which has been actively accumulating Bitcoin since August 2020, has typically made consistent purchases even during market downturns.

Michael Saylor, the company’s executive chairman, stated that MicroStrategy did not sell any shares of its Class A common stock. The firm has been raising capital by selling MSTR shares since early 2024 to fund additional Bitcoin acquisitions. 

Last week, MicroStrategy did not sell any shares of class A common stock under its at-the-market equity offering program, and did not purchase any bitcoin. As of 2/2/2025, we hodl 471,107 $BTC acquired for ~$30.4 billion at ~$64,511 per bitcoin. $MSTR https://t.co/QTBWl8KlNv

— Michael Saylor⚡️ (@saylor) February 3, 2025

However, unlike previous weeks, the company did not make any new purchases during the latest price dip.

MicroStrategy’s Bitcoin holdings currently stand at 471,107 BTC, acquired at an average price of $64,511 per BTC. The company’s total investment amounts to approximately $30.4 billion, with an unrealized profit of around $30,700 per Bitcoin based on the latest price.

Mixed Reactions from the Crypto Community

The update from Saylor has sparked various reactions within the cryptocurrency community. Some market participants view the pause in purchases as a strategic decision ahead of MicroStrategy’s upcoming earnings report.

An X user, @jordonriver47, speculated that the company could be waiting for MSTR shares to rise before selling more stock and acquiring additional Bitcoin.

Others, however, see the move as unusual, considering MicroStrategy’s history of buying Bitcoin during price declines. Some traders have questioned whether the company is exercising caution due to ongoing market volatility. 

With Bitcoin experiencing fluctuations and briefly dipping below $92,000, some expected the firm to take advantage of lower prices.

Bitcoin RSI Reaches Oversold Levels

Technical indicators suggest that Bitcoin could be nearing a local bottom. The 4-hour Relative Strength Index (RSI) on BTC/USD dropped below the 30 level, signaling that the asset is in an “oversold” condition.

According to Caleb Franzen, creator of Cubic Analytics, this marks the fifth instance since August 2024 that Bitcoin’s 4-hour RSI has reached these levels. 

“For the 5th time since August 2024, Bitcoin’s 4-hour RSI is becoming oversold,” Franzen noted on X. 

Previous occurrences of similar RSI dips have been followed by price recoveries, which traders will be watching closely in the coming days.

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