- MicroStrategy paused Bitcoin purchases after a 12-week streak of consistent buying.
- Bitcoin’s price dropped to $98K due to growing tensions between the US and China.
- Liquidation volumes surged as volatility increased during geopolitical uncertainties.
MicroStrategy (MSTR), known for its Bitcoin accumulation, surprised the crypto community by refraining to add Bitcoin to its holdings. With this step, it broke its 12-week consecutive purchase. Michael Saylor, the founder of MSTR, has been buying Bitcoins since 2020 and has been accumulating the crypto at every given opportunity.
In his X post, Saylor cleared speculations stating that he nor the firm made any recent purchase. He added that the firm holds 471,107 BTC, acquired for $30.4B at an average cost of $64,511 per token. Further, he stated that no shares of its Class A common stock were sold under its publicly traded equity offering program during the same period.
Saylor has supported Bitcoin as property in response to the US Department of Justice’s claim that fiat money is not legally recognized property. The DOJ’s position implies that traditional money does not have the same constitutional protections as property, raising issues about financial sovereignty and ownership rights. He highlighted Bitcoin’s distinguishing characteristics, such as its autonomy and resistance as a safeguard against governmental overreach and instability.
Bitcoin Revises Facing Trade Tariffs and Economic Uncertainty
The token’s price faced a correction, dropping to $98,000 from its recent high. The intraday range fluctuated between $94,258 and $102,591. This decline coincided with tensions after China imposed retaliatory tariffs on U.S. goods.
President Donald Trump had earlier introduced tariffs on imports from Canada, Mexico, and China. Although taxes for Mexico and Canada were suspended for 30 days to allow further negotiations, China’s charges remained in effect, intensifying global trade concerns.
The price correction highlights Bitcoin’s sensitivity to external factors, including political events and business disruptions. The market, often seen as a gauge for shareholder sentiment, mirrored the unease caused by escalating trade tensions.
Related: Trump lifts Tariffs on Canada and Mexico as China Retaliates
Coinglass Data Reveals Rising Liquidation Volumes
Coinglass’s BTC Total Liquidations Chart showed a notable surge in liquidation activity during the first week of February 2025. Long trading dominated as BTC hovered around $98K. The data also revealed spikes in late November 2024, as it reached a peak of $120,000.
Source: Coinglass
Following the November highs, selling volumes eased in December 2024 and January 2025 as the token fluctuated between $80,000 and $100,000. However, February’s liquidation shows the impact of market volatility and leveraged positions.
As Bitcoin grapples with global uncertainties, MicroStrategy’s BTC investments reflect the focus on digital assets as a hedge against monetary instability. Will Bitcoin maintain its resilience amid economic disruptions?
