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Bitcoin Rises from a 16-Month Low but Heads for Weekly Loss
Bitcoin rose from a 16-month low during Asian trading on Friday but is heading toward a deep weekly decline as broad risk aversion amid uncertainty over U.S. monetary policy weighs on cryptocurrency prices.
The cryptocurrency remained under pressure after the largest corporate holder, Strategy Inc (NASDAQ:MSTR), reported a significantly wider fourth-quarter loss on Thursday, mainly driven by a decline in the value of its Bitcoin holdings.
Bitcoin gained 5% to $66,144.7 at 06:48 GMT, recovering from a 16-month low of $60,187.0.
The world’s largest cryptocurrency has lost more than 50% from the record high reached in October and has erased all gains made after Trump’s election victory in late 2024.
Bitcoin Heads for a 16% Weekly Loss — Third Consecutive Week in the Red
Bitcoin is heading for its third straight week of losses and is trading down nearly 16% for the week.
In recent weeks, the cryptocurrency has suffered from a broader outflow from risky and speculative assets. Losses intensified after Trump nominated Kevin Warsh as his candidate for the next Chair of the Federal Reserve.
Warsh is viewed as a less dovish candidate, particularly given his criticism of the Fed’s asset purchase programs. This trend could lead the Fed to maintain a leaner balance sheet in the long term — a scenario expected to tighten monetary policy and put pressure on speculative assets such as cryptocurrencies.
Investors began shedding risky assets following Warsh’s nomination. The prolonged decline in U.S. technology stocks, which cryptocurrencies typically follow, also spilled over into the sector.
Strategy’s Q4 Loss Surges Amid Bitcoin Weakness
Strategy Inc (NASDAQ:MSTR) reported a much larger fourth-quarter loss on Thursday — $12.4 billion compared to $670.8 million a year earlier.
The loss was mainly driven by the persistent decline in Bitcoin prices since October. The cryptocurrency largely failed to regain momentum after a sharp drop in late October that rattled markets.
As of February 1, Strategy holds 713,502 Bitcoins with an average cost of $54.26 billion, or $76,052 per Bitcoin. With the cryptocurrency now trading below this average price, markets fear the company may be forced to sell part of its holdings to meet debt obligations.
The company, led by Bitcoin advocate Michael Saylor, financed its Bitcoin purchases through a combination of debt instruments and issuing new shares.
Crypto Prices Today: Altcoins Also Head for Weekly Losses
Broader cryptocurrency prices tracked Bitcoin’s recovery but still suffered heavy losses over the past week.
The world’s second-largest cryptocurrency, Ether, rose nearly 5% to $1,916.62 but fell about 22% over the week.
XRP and BNB rose 7% and 3% respectively but dropped about 20% each for the week.
Solana was heading for a weekly loss of 24%, while Cardano fell 13.5%.
Among meme coins, Dogecoin lost 13% for the week, while $TRUMP fell about 23%.
