What happened: Bitcoin’s (BTC-USD) sharp losses extended into Thursday, with the token dropping more than 6% to hover near $62,750.
What’s behind the move: The world’s largest cryptocurrency has been in sell-off mode in recent sessions. Investor sentiment deteriorated earlier this week after digital asset treasury giant Strategy (MSTR) revealed it sold tokens for the first time since 2022.
Although the sale of 32 tokens was just a fraction of Strategy’s bitcoin holding, the move rattled markets, as it was a departure from the company’s aggressive buy-and-hold strategy.
What else you should know: Analysts have been eying $65,000 as a key support level.
“If there were to be a protracted and significant break below here, then that would increase the likelihood that the February low of $60,000 comes into play,” Trade Nation senior market analyst David Morrison said.
Compass Point’s Ed Engel noted that 26% of bitcoin sales over the past 30 days have been from investors who bought the token when it was priced above $90,000.
“This cohort of top-buyers had been resilient throughout the bear market; however, they’re finally capitulating as BTC approaches new cycle lows,” Engel said in a note.
“This makes us more confident that BTC’s bear market is in late stages,” he added.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
Click here for the latest technology news that will impact the stock market
Read the latest financial and business news from Yahoo Finance
