Strategy's Bitcoin conviction is facing its toughest test yet as the crypto market enters a prolonged downturn. On prediction market Myriad, owned by Decrypt’s parent company, DASTAN, users now see a 36% likelihood that the Bitcoin treasury firm will sell some of its BTC holdings before year-end, up from 22% at the start of the week. The bearish shift comes as Bitcoin plunged below key support levels to trade at $76,039—just below the average purchase price of Strategy’s Bitcoin holdings. The cryptocurr ...

Core Insights - The recent downturn in the crypto market is attributed to significant profit-taking by large investors, known as whales, alongside technical breakdowns and investor fatigue from previous market frenzies [1] Market Analysis - Major causes of the crypto market decline include massive profit-taking by whales, indicating a shift in market sentiment [1] - Technical breakdowns have contributed to the downturn, suggesting vulnerabilities in market structures [1] - Investor fatigue from recent frenzies highlights a potential cooling off in speculative trading activity [1] Future Outlook - Discussion on where true value lies in the current market indicates a search for more stable investment opportunities [1] - Future liquidity improvements may enhance risk management strategies, potentially stabilizing the market [1]