Bitcoin Price Today: Stuck at $105K Despite Strategy’s Purchases

Cryptocurrency

Bitcoin remained under pressure on Tuesday, continuing its decline after a brief recovery, as progress on ending the U.S. government shutdown and additional buying from major corporate holder Strategy did little to support prices.

The world’s largest cryptocurrency fell 0.7% to $105,355.6 as of 05:25 GMT.

Bitcoin Reacts Weakly to Shutdown Progress and Strategy Purchases

Bitcoin retreated despite overall risk appetite being supported by the U.S. Senate’s approval of a bill aimed at ending the government shutdown in the world’s largest economy.

The bill will now move to the House of Representatives on Wednesday, with the Republican majority signaling it will approve the measure.

However, the news provided limited support for Bitcoin and the crypto market, as investors largely preferred other risk assets — particularly stocks. The rebound in tech shares also drew more capital into equities rather than cryptocurrencies this week.

Bitcoin barely reacted to Strategy Inc (NASDAQ:MSTR) — the world’s largest corporate BTC holder — announcing the purchase of 487 coins this week, bringing its total holdings to 641,692 BTC.

Short Seller Jim Chanos Closes Strategy Position

Famed short seller Jim Chanos, known for shorting Enron before its 2001 collapse, said over the weekend that he had closed his short position on Strategy, as the company’s stock price fell to levels corresponding to the value of its Bitcoin holdings.

His short bet was based on Strategy trading at a significant premium to its BTC net asset value. After a prolonged stock decline over the past month, Chanos said he had decided to exit his position.

He noted that Strategy’s enterprise-value-to-Bitcoin-NAV multiple (mNAV) had halved this year to 1.23x from 2.50x at the time he disclosed his short.

Chanos added there was still room for further compression in Strategy’s valuation.

Class A shares of Strategy are down 20.4% year-to-date, as investors increasingly question the company’s premium relative to its BTC holdings.

Crypto Prices Today: Altcoins Move Sideways With Bitcoin

The broader cryptocurrency market traded flat to lower due to a lack of fresh positive catalysts. Bitcoin’s weakness largely spilled over to other coins.

• Ethereum fell 1.6% to $3,549.22
• XRP rose 0.9% to $2.4739
• Solana and Cardano dropped over 1% each
• BNB slipped 2.4%
• Among meme tokens, Dogecoin fell 1.5%, while $TRUMP gained 4.2%

See also: "XRP rises 12% in 24 hours following ETF filings and possible capital inflows"

#Bitcoin (BTC) #Strategy

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