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- Bitcoin dropped 3.6% despite Strategy purchasing $1.99 billion worth of BTC, as bearish technical indicators show further downside risks.
- Michael Saylor proposed a Bitcoin reserve plan to the SEC, which could generate trillions for the U.S. Treasury and help manage the national debt.
Bitcoin’s price fell 3.6% on Monday, trading near $93,585, even as Strategy (formerly MicroStrategy) acquired an additional $1.99 billion worth of BTC. Since its latest Bitcoin acquisition, Strategy now holds a total of 499,096 BTC, making it the biggest corporate Bitcoin owner. However, market sentiment remains weak amid technical bearish indicators and concerns surrounding a recent security breach at Bybit.
Michael Saylor, executive Chairman of Strategy, presented Bitcoin strategic reserve recommendations to the U.S. Securities and Exchange Commission (SEC). Through this proposal, the country targets debt reduction by utilizing Bitcoin as an asset reserve. According to Saylor’s assessment, a 20% control of Bitcoin’s supply would yield between $16 trillion and $81 trillion for America’s Treasury, thus securing the country’s economic stability.
🚨NEW: @saylor met with the @SECGov #crypto task force on Friday. pic.twitter.com/KkLfb5Mf2Q
— Eleanor Terrett (@EleanorTerrett) February 24, 2025
Michael Saylor’s Bitcoin Strategic Reserve Proposal
Saylor’s framework, part of his Digital Assets Framework introduced in December 2024, categorizes digital assets into six groups: Digital Commodities, Digital Securities, Digital Currencies, Digital Tokens, Digital NFTs, and Digital ABTs. Bitcoin belongs to the Digital Commodities category since it lacks a central controlling authority. The proposal contains two key provisions, including annual maintenance expenses limited to 10 basis points and compliance costs restricted to 1% of managed assets.
Strategy continues expediting its purchase of Bitcoin, recently acquiring 20,356 BTC at an average cost of $97,514 per BTC. Following these purchases, the company’s total Bitcoin investment reaches $33.1 billion, at an average cost of $66,357 per Bitcoin.
Strategy has acquired 20,356 BTC for ~$1.99B at ~$97,514 per bitcoin and has achieved BTC Yield of 6.9% YTD 2025. As of 2/23/2025, we hodl 499,096 $BTC acquired for ~$33.1 billion at ~$66,357 per bitcoin. $MSTR https://t.co/mNWDaXRE7N
— Michael Saylor⚡️ (@saylor) February 24, 2025
Throughout his role, Saylor continues to defend Bitcoin as a corporate treasury asset while promoting its adoption by institutions. According to a recent CNF report, Strategy relies on debt financing and equity capital increases to support its acquisition-driven Bitcoin investment strategy while relying on anticipated Bitcoin value appreciation. With BTC still trading nearly 20% below its all-time high, Strategy’s continued accumulation suggests confidence in future price gains.
Market Outlook: Bearish Pressure Persists
Bitcoin faces renewed selling pressure following Bybit’s security breach, which has dampened investor sentiment. From a technical standpoint, the cryptocurrency is showing signs of weakness. The 20-day exponential moving average (EMA) has crossed below the 50-day EMA, forming a bearish ‘death cross.’ This pattern historically indicates downside risks.
Bitcoin is also struggling to break above key resistance levels. The 50-day and 100-day EMAs, currently at $96,951 and $97,531, respectively, continue to reject price recovery attempts. If BTC fails to reclaim these levels, the price may decline toward $90,000, a key psychological support. The Relative Strength Index (RSI) sits at 38.34, indicating oversold conditions, but its downward trajectory reinforces the bearish trend.
A daily close below $93,000 could accelerate losses toward $88,000. However, if Bitcoin regains the $96,000 level and surpasses $97,500, bullish momentum may return, potentially pushing the price back toward $100,000.
