#BTCProbes60KKeySupportLevel

Bitcoin retested the critical $60,000 level amid concerns about Strategy’s financing structure and weakening investor demand. As selling pressure increased, millions of dollars in long positions were liquidated in the market.

Bitcoin, the leader of the cryptocurrency market, retested the critical $60,000 support as investors assessed growing concerns about Strategy’s financing model and some retail investors pulled back from the market.

Bitcoin fell as much as 5.4% on Wednesday, dropping to $59,023, its lowest level since October 2024. Earlier in June, the cryptocurrency also fell below $60,000, and in recent trading it steadied at $60,804, down 0.16%.

During the sharp pullback in the market, according to data, approximately $800 million in long positions were liquidated over the past 24 hours. This sell-off occurred ahead of about $10 billion in Bitcoin options contracts set to expire on Friday.

As it slipped to its lowest level since February 2024, the effective yield on its securities rose to about 14%.

Growing doubts amid the continued decline

The company had previously financed its Bitcoin purchases using funds obtained from issuing common stock and preferred securities, and had been one of the market’s key buyers during periods of heavy selling. However, the prolonged drop in the price of Bitcoin has resulted in unrealized losses of billions of dollars, while also raising questions about whether the company can continue its purchases at the same pace.

Meanwhile, some retail investors have shifted their capital and interest toward AI-focused technology stocks. Losses among investors in exchange-traded funds that bought Bitcoin at higher levels have reduced their willingness to make new purchases or expand existing positions.

Stephane Ouellette said that increasingly weaker expectations for interest rate cuts have negatively affected the perception that Bitcoin serves as a hedge against inflation.