Bitcoin Sinks Below $76K as Strategy Cost Basis in $2B Liquidation

Bitcoin (BTC), the leading cryptocurrency coin has stunned investors as the price sank below the $80,000 level, the first time in over 9-months. Notably, Bitcoin has not traded below the$80,000 level since April 2025.

However, as per CoinMarketCap data, Bitcoin dropped sharply by over 5% as price tumbled from a daily peak of $82,776.63 to a low of $75,815.88. Market indicators suggest the sinking price comes as institutional interest in Bitcoin wanes amid continued stagnation and volatility.

Bitcoin $2B Liquidation Wave Follows Institutional ETF Outflows

The development has triggered huge losses among Bitcoin traders. Over $2.5 billion in leveraged long positions have been liquidated within the last 24 hours. This massive liquidation has sparked selloffs in the Bitcoin market.

Bitcoin’s crash was only a matter of time given the huge outflows from institutional players in the last two weeks of January 2025. Farside Investors data reveal that since January 16 till date, the Bitcoin exchange-traded funds (ETFs) market has recorded consistent outflows except once, which was on January 26.

The waning institutional interest has negatively impacted BTC’s price outlook in the broader crypto space.  

Strategy’s Cost Basis Tested as Bitcoin Slips 

Strategy, the business intelligence firm led by Michael Saylor, is facing intense pressure and could slip into the red zone. Strategy currently holds 712,647 BTC purchased at an average price of $76,037 per coin.

Further decline could put the firm in an uncomfortable position, which might force Strategy to sell at a loss, should it choose to minimize risk.

As of this writing, Bitcoin exchanged hands at $78,469.34, which represents a 5.31% decline in the last 24 hours.

BTC Trades Below ‘True Market Mean’

An analyst at On-Chain College on X noted that Bitcoin trading below $80,000 suggests that the coin is entering a short-to-medium-term weak phase. He highlighted that the leading digital asset is now trading below the “True Market Mean,” which is $80,700.

For clarity, the True Market Mean (TMM) is a metric that estimates Bitcoin’s fair or average value based on actual onchain activity and long-term holders’ behavior. So, when Bitcoin’s price is above the TMM, it implies that the market is healthy. However, if it slips below as it currently has, the market is under stress and showing weakness.

The market condition suggests that buyers are losing control, and Bitcoin might experience further pullbacks.