Bitcoin (BTC) crashed spectacularly on Thursday, falling nearly 4% and going below the key $110,000 level to $109,035. The crash dwarfed Monday’s 2.21% drop, which liquidated over $1.6 billion in leveraged positions. The flagship cryptocurrency is marginally up during the ongoing session, trading around $109,253. MSTR Stock In The Doldrums Thanks To Bitcoin Drop Strategy’s (MSTR) stock price fell below a key support level as BTC crashed below $110,000 and its mNAV multiple fell to a year-to-date low. MSTR fell to $297 on Thursday, its lowest level since April, and 35% below its all-time high. The crash brought its market capitalization from $129 billion to $84 billion. The stock has plunged due to the ongoing crypto market crash, with BTC falling below $110,000 for the first time since September 1. Analysts highlighted that it has formed a head-and-shoulders pattern, indicating further downside in the near term. Meanwhile, BTC has formed a rising wedge on its weekly chart, suggesting markets could be witnessing the start of prolonged bearish sentiment. A prolonged bear market could spell trouble for Strategy and its stock price. The company has established itself as the largest corporate holder of Bitcoin , holding 639,835 BTC , valued at $69 billion at current prices. BTC’s decline means that Strategy's premium has also plunged. Strategy’s mNAV has also dropped to a year-to-date low of 1.195. A falling mNAV is risky because Strategy uses its premium to raise capital and fund Bitcoin purchases. BlackRock Chases Bitcoin Yield BlackRock, the world’s largest asset manager, has filed to register a Delaware trust company for its proposed Bitcoin Premium Income ETF. The filing indicates BlackRock’s intention to broaden its Bitcoin offerings. According to Bloomberg ETF analyst Eric Balchunas, the proposed ETF will sell covered call options on Bitcoin futures and generate yield by collecting premiums. “BlackRock registered the name iShares Bitcoin Premium ETF, filing coming soon. This is a covered call bitcoin strategy in order to give BTC some yield. This will be a '33 Act spot product, sequel to the $87b.” The new ETF will complement BlackRock’s existing iShares Bitcoin ETF (IBIT). IBIT has registered over $60 billion in net inflows since its launch in January 2024. PCE Data Has Little Impact Meanwhile, macroeconomic triggers did little to boost Bitcoin and the broader cryptocurrency market. The Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, was in line with expectations at 2.7%. The Koebeissi Letter noted that while the PCE was at a seven-month high, the Fed still went ahead with the interest rate cuts. “PCE inflation is at its highest since February 2025. Yet, the Fed will keep cutting rates.” Bitcoin (BTC) Price Analysis Bitcoin (BTC) is struggling to recover after Thursday’s crash, which saw the price slip below $110,000 to $109,035. The flagship cryptocurrency endured a brutal week starting Monday, when a flash crash liquidated $1.6 billion in leveraged positions. Price action remained bearish on Tuesday before a recovery on Wednesday saw BTC settle at $113,348. However, selling pressure returned on Thursday as it fell almost 4% to $109,035. The price is marginally up during the ongoing session, but selling pressure persists. On-chain analysis shows that BTC could be headed for a deeper correction as cumulative realised long-term holder profit-taking is reaching levels seen during previous cycle tops. According to the analysis, long-term BTC holders realized 3.4 million BTC in profit. ETF inflows have also slowed, indicating exhaustion following the Federal Reserve’s rate cut last week. Analysts fear bears could drag prices even lower, with the rebound quickly losing momentum. 10x Research head Markus Thielen stated, “The bounce back from that dip quickly lost momentum, and with prices now hovering close to this level again, another wave of stop-loss selling could emerge. This comes at a time when many are positioned for a Q4 rally — making the bigger surprise not a surge higher, but a correction instead.” However, popular chartist Egrag Crypto believes Bitcoin is still in a bull market even after the week’s substantial pullback. According to the analyst, the current market scenario is part of a pattern that has played out since the end of 2022. The analyst believes that Bitcoin’s bullish cycle is not over, and that the market could make one final rally before the onset of a bearish phase. BTC ended the previous weekend in the red, dropping 0.56% and settling at $115,314. The price faced volatility on Monday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as BTC registered a marginal increase and settled at $115,381. Bullish sentiment intensified on Tuesday as the price rose 1.26% to cross $116,000 and settle at $116,832. Selling pressure returned on Wednesday as BTC fell to an intraday low of $114,724. It recovered from this level to settle at $116,484, ultimately dropping 0.30%. BTC reached an intraday high of $117,998 on Thursday. However, it could not stay at this level and settled at $117,117. The price lost momentum on Friday, dropping 1.22% to $115,690. Source: TradingView Price action was mixed over the weekend, with BTC registering a marginal increase on Saturday. However, it was back in the red on Sunday, dropping 0.41% to $115,282. The flagship cryptocurrency plunged to an intraday low of $111,761 on Monday as bearish sentiment intensified. It recovered from this level to reclaim $112,000 and settle at $112,736. Buyers attempted a recovery on Tuesday as BTC reached an intraday high of $113,357. However, it failed to stay at this level and settled at $112,017, ultimately dropping 0.64%. The price fell to an intraday low of $111,066 on Wednesday as selling pressure intensified. Despite the bearish sentiment, it recovered to register a 1.19% increase and settle at $113,348. Bearish sentiment intensified on Thursday as BTC plunged nearly 4%, slipping below $110,000 and settling at $109,035. The flagship cryptocurrency is marginally up during the ongoing session, trading around $109,455. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
