Bitcoin Crash Hits Strategy and Spot ETFs, Saylor Signals More Buys

The recent Bitcoin BTC $77 603 24h volatility: 1.7% Market cap: $1.55 T Vol. 24h: $83.01 B price crash over the past week has caught institutional players off guard.

Strategy, formerly MicroStrategy, the largest corporate Bitcoin treasury holder led by Michael Saylor, is now sitting on more than $1 billion in unrealized losses as BTC fell below $75,000.

At the same time, spot Bitcoin ETFs have recorded heavy outflows, with BTC trading well below their average cost basis.

Strategy Faces $1 Billion Loss on Bitcoin Holdings

Amid the sharp Bitcoin price correction, Michael Saylor’s Strategy is sitting on over $1 billion in unrealized losses across its 712,647 BTC holdings.

This has raised concerns among MSTR investors about potential volatility and liquidation risks ahead.

As of now, Strategy’s average Bitcoin purchase price stands at $76,037. Earlier today, BTC briefly dropped to $74,500, resulting in more than $1 billion in unrealized losses.

However, at press time, Bitcoin is trading around $76,711, placing the company’s holdings back in positive territory.

Some analysts have speculated that Michael Saylor could sell part of his holdings if losses deepen.

Saylor has dismissed these concerns, remaining confident in his Bitcoin strategy and signaling potential further accumulation in a Feb. 1 post on X.

Other market participants are also viewing the Bitcoin correction as a buy-the-dip opportunity.

Last week, crypto exchange Binance said it would allocate $1 billion of its users’ funds to Bitcoin.

Spot Bitcoin ETFs Face Heavy Outflows Amid BTC Price Drop

Amid the recent price drop, Bitcoin is once again trading below the average cost basis of spot Bitcoin ETFs.

In the final weeks of January, these ETFs recorded their second- and third-largest weekly outflows, according to analyst Alex Thorn.

U.S. spot Bitcoin ETFs now manage roughly $113 billion in assets, holding an estimated 1.28 million BTC.

Based on these holdings, the implied average cost basis across the ETFs is approximately $87,830 per Bitcoin.

Flow data points to continued selling pressure. The 11 spot Bitcoin ETFs recorded a combined $2.8 billion in net outflows over the past two weeks, including $1.49 billion last week and $1.32 billion the week before.

Assets under management (AUM) for spot Bitcoin ETFs have fallen sharply, dropping 31.5% from their October peak of $165 billion. Over the same period, the spot BTC price declined by roughly 40%.

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