Bitcoin News Today: Crypto's Fragile Trust: Saylor Quells Panic, Bearish Markets Linger

Michael Saylor, chairman of Strategy Inc. (NASDAQ: MSTR), has denied recent rumors that the company sold a portion of its Bitcoin holdings, quelling a market panic triggered by $5.7 billion in cryptocurrency transfers to new wallets. The speculation, fueled by on-chain activity and social media chatter, briefly sent MSTR shares plunging and spiked betting odds on a Bitcoin sale on platforms like Polymarket. Saylor swiftly dismissed the claims during a Friday CNBC appearance, reiterating the company's commitment to its Bitcoin accumulation strategy and hinting at additional purchases to be disclosed Monday.

The wallet movements, which involved transferring 43,415 BTC to over 100 addresses, were clarified by blockchain firm Arkham as routine custody management, not liquidation. Despite this, the confusion underscored growing investor anxiety over Strategy's financial health. The company's stock closed Thursday at $208.54, down 7.2%, with a market cap of $59.92 billion-now trading at a 1.24x basic mNAV ratio to its $61.3 billion in Bitcoin holdings.

Analysts like Dr. Julian Hosp warn the ratio could fall toward 0.2 unless Saylor sells Bitcoin to prop up the share price.

The broader Bitcoin market mirrored the volatility. The cryptocurrency traded near its 50-week simple moving average (SMA) at $97,000, a critical technical level that traders are watching for confirmation of sustained momentum. Meanwhile, U.S. spot Bitcoin ETFs saw $870 million in outflows Thursday, the second-largest single-day withdrawal since their launch, as institutional demand waned. Markus Thielen, CEO of 10x Research, warned that risk managers may force further portfolio rebalancing, deepening Bitcoin's underperformance against assets like gold and tech stocks in 2025.

Corporate Bitcoin accumulation also slowed sharply in October, with public and private firms adding only 14,400 BTC -60% less than September-according to BitcoinTreasuries.net. Strategy, which holds 641,692 BTC or 60% of all corporate holdings, has shifted from convertible debt to preferred equity financing for Bitcoin purchases, signaling a strategic pivot. The company's dominance has faced challenges as entities like Japan's Metaplanet added BTC despite stock declines according to the same report.

The episode highlights the fragile balance between institutional confidence and market speculation. While Saylor's reassurances calmed immediate fears, the broader crypto ecosystem remains in a bearish phase, with CryptoQuant's Bull Score Index dropping to 20 from 80 in October. As ETF outflows persist and long-term holders continue selling, the path for Bitcoin's recovery hinges on reclaiming key technical levels and restoring investor trust in corporate Bitcoin strategies.