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Strategy’s Michael Saylor hinted that Bitcoin may have bottomed around $60,000 as traders positioned for a steadier build-up. The crypto market gained momentum after a US-Iran pause, with the top cryptocurrency rising more than 7% over the week, though fears of prolonged sell-offs remain across several markets.
Bitcoin bulls have leaned into positive sentiment this week, seeking to reclaim value amid macroeconomic and geopolitical headwinds. Saylor said the price likely bottomed, pointing to a sentiment spike driven by seller exhaustion.
Crypto assets have faced heavy headwinds this year, falling to multi-month lows. Bitcoin initially dropped 35% and then posted further losses after trading fell below the $70,000 level. The sell-off was attributed to over-leveraged miners and weaker institutional holders looking to limit losses.
Saylor linked the pressure to institutional and corporate behavior earlier in the cycle, when many firms acquired crypto during a corporate treasury push to diversify cash reserves. As new windows opened for institutional investors, Bitcoin and other assets became part of balance-sheet strategies. Over time, drawbacks outweighed the benefits for weaker holders, contributing to position losses and mass liquidations.
Saylor suggested a change in momentum may be underway, citing rising spot ETF demand and whale accumulation. He also noted that Bitcoin is trading above $70,000 as Middle East tensions ease over the next two weeks. U.S. stocks are also rising, which he said signals broader improvement in investor confidence.
Still, while macro conditions appear to be aligning, on-chain indicators such as supply profit declines point to lingering risks.
Analyst Darkfrost wrote that nearly 50% of BTC is held at a loss, a proportion at which bear markets have previously bottomed. He also said bull resilience is notable relative to wider market expectations.
More specifically, the share of Bitcoin supply estimated to be in profit is around 59%, a level close to what was seen during the last bear market. While this may appear counterintuitive, the market typically needs investors holding in profit to sustain positive momentum. Historically, the average sits closer to 75% of supply in profit, meaning current levels are below typical conditions.
Saylor also played down the risk posed by quantum computers to Bitcoin, arguing it can be managed as the technology advances. The topic has remained divisive within the crypto community following Google’s latest security report.
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