Bitcoin Falls Below Key MicroStrategy Benchmark
Bitcoin’s price fell below $77,000, hitting its lowest level since April 2025. The drop was strong enough that it is now trading below $76,037, the average purchase price of MicroStrategy’s massive Bitcoin holdings.
This is an important level for market observers. MicroStrategy, now called Strategy, is considered an indicator of institutional adoption of Bitcoin. Their average cost base was last cut downward in October 2023, so this move seems notable.
Market conditions and liquidation pressure
The sell-off occurred in what appears to be low liquidity conditions. There just wasn’t much buying appetite to counteract the selling pressure. Over the past few weeks, Bitcoin has fallen more than 30% from its highs.
Analysts point to a few factors. Macroeconomic uncertainties are part of this, but perhaps more importantly, highly leveraged positions have been unwound. When these start to be liquidated, it can create a cascading effect.
Speaking of liquidations, the futures market saw $2.54 billion in positions wiped out in the last 24 hours. The vast majority – $2.40 billion – came from long positions. In comparison, short position liquidations amounted to just $134 million. This imbalance tells you where the pressure was coming from.
MicroStrategy’s position
MicroStrategy holds 712,647 Bitcoins in its portfolio, worth approximately $55.52 billion at current prices. Their average cost is $76,038 per Bitcoin.
This is where it gets interesting. Despite the decline, the company still has an unrealized profit of around 2.46%, which equates to around $1.33 billion. But it’s a slim margin, and it could disappear quickly if prices remain below their cost base.
I think what makes this situation worth watching is how MicroStrategy has positioned itself. They have been accumulating Bitcoin for years, often buying during dips. But if prices remain below their average purchase price for an extended period of time, it could test their strategy.
Looking to the future
The market seems fragile at the moment. Low liquidity amplifies moves in both directions, and with the liquidation of leveraged positions, we could see more volatility before the situation stabilizes.
It is worth remembering that Bitcoin has been through these cycles before. The $76,000 level was important support, and breaking below changes the technical situation. Whether it’s just a deeper correction within a longer-term uptrend or something more significant, well, that’s what everyone is trying to figure out.
For now, the data shows clear pressure on long positions and a market testing key levels. How institutions like MicroStrategy respond could give us clues about where things will go from here.
