Bitcoin Falls Below $63K as $2M Tate Gamble Collapses; Schiff Hails 'Game Over'

Bitcoin dropped to $63,000 on Thursday, marking one of its largest one-day drawdowns since the FTX collapse in 2022. The price decline intensified selling pressure across crypto markets and spilled over into traditional assets. Silver and gold also fell sharply amid broader risk-off sentiment.

MicroStrategy reported a $12.4 billion net loss in Q4 2025 due to Bitcoin's steep price drop. The company's stock fell 17% as its Bitcoin holdings lost over $9 billion in value since 2020. MicroStrategy's balance sheet remains strong with $2.25 billion in cash reserves.

The sell-off has prompted widespread concern about the health of the crypto market. Companies like Gemini and DDC Enterprise are adjusting their strategies, with some reducing headcount and others extending Bitcoin purchases. The broader market cap for cryptocurrencies has fallen below $1.3 trillion.

Why Did This Happen?

Bitcoin's recent decline has been driven by profit-taking by early investors and reduced inflows into crypto ETFs. Michael Novogratz of Galaxy Digital noted a significant sell-off by one customer, who offloaded $9 billion worth of crypto. This has contributed to a market psychology shift, with investors moving away from risk assets.

The U.S. Treasury has taken a firm stance, stating that it will not provide a bailout for Bitcoin. This message was reinforced by David J. Bessent during a recent hearing, where he emphasized that the government sees Bitcoin as a speculative asset and not part of critical financial infrastructure.

What Are Analysts Watching Next?

Market observers are closely monitoring whether new buyers will step in to stabilize prices. Jim Bianco of Bianco Research has stated that positive news has failed to spark upward movement in Bitcoin. The market is now waiting for a new narrative to emerge that could drive prices higher.

The price action has also triggered a reevaluation of corporate investment strategies. MicroStrategy's CEO Phong Le stated that Bitcoin would need to fall to $8,000 and remain there for five years before the company would face balance sheet issues. This view reflects a long-term perspective that many crypto firms are adopting.

What Are Investors Considering Now?

Investor behavior is shifting as the market tests key support levels. The price of Bitcoin is currently trading well below its October 2025 peak of $126,000. Analysts are watching whether $58,000 to $60,000 can serve as a floor for the next leg of the market.

Corporate strategies are also evolving. Some firms are tightening operations and reducing headcount to remain profitable. The crypto market is still assessing the long-term viability of Bitcoin as an investment vehicle and a store of value.

Peter Schiff has criticized Bitcoin's performance, arguing that the losses over the next five years will be much greater. He has also highlighted the U.S. focus on Bitcoin as misguided, noting that China is expanding its gold reserves instead of investing in crypto.