Bitcoin slid toward its steepest weekly decline since November 2022 after Strategy, the crypto‑focused public firm led by Michael Saylor, sold a modest block of its stash. The market saw a 5.5% dip to $61,344 before a slight rebound, leaving the digital asset down nearly 14% for the week. The fall sparked volatility on derivatives, pushing traders to liquidate positions.

The sale comprised 32 bitcoin for roughly $2.5 million, marking only the second liquidation since Strategy began buying in August 2020. The proceeds fund coupon payments on its high‑yield preferred stock, a financing structure that critics argue could force larger future disposals if bitcoin prices stay volatile. The financing model, which relies on perpetual preferred shares paying 11.5% annual dividends, further strains the balance sheet.

Investors are fleeing crypto for AI‑driven equities, a shift echoed by Wintermute strategist Jasper de Maere, who says retail capital has largely abandoned digital assets. With Senate negotiations stalled and debt‑heavy balance sheets at firms like Strategy, demand‑side pressure adds to the bearish technical outlook, keeping Bitcoin anchored near $60,000. Regulators remain wary, and without policy guidance, institutional inflows are unlikely to revive the market.