Bitcoin plummets below $65,000 and marks its worst drop since the 2022 crash

The cryptocurrency market experienced one of its most complicated days in years, after Bitcoin recorded its biggest daily drop since the 2022 crypto collapse, rekindling fears about the sector's volatility and generating fresh doubts among investors and crypto enthusiasts. 

The main cryptocurrency, which sets the trend for the rest of the sector, traded at around $63,600, representing an approximate 13% drop in 24 hours. This significant movement dragged down other digital assets and hit hard the companies most exposed to the crypto ecosystem.

One of the most affected companies was undoubtedly Strategy, a firm led by Michael Saylor and known for its aggressive bitcoin accumulation. As reported by The Wall Street Journal, the company reported a net loss of $12.4 billion in the fourth quarter, primarily driven by a drop in the value of its digital holdings.

The decline, in addition to impacting corporate balance sheets, also triggered automatic sell-offs on some exchange platforms, where leveraged positions were liquidated as traders' collateral lost value, further accelerating downward pressure.

Bitcoin's pullback marks an abrupt change from the enthusiasm that dominated the market months ago, when the world's most famous cryptocurrency hit all-time highs and encouraged several companies to adopt strategies similar to Strategy's, adding cryptocurrencies to their holdings.

Despite the phenomenal drop, the company has maintained its long-term stance. During a call with investors, Saylor defended the sector's potential and highlighted the political support the industry is receiving in the United States under the Trump administration.

However, the problem right now is simple: Bitcoin is trading well below the average price that some large firms paid to acquire it recently, fueling fears of further selling if the downtrend deepens, a possibility that some experts do not rule out.

Strategy's shares indeed reflect that nervousness. The paper has lost nearly 68% over the past year, demonstrating how direct exposure to Bitcoin can amplify both gains and losses.

For now, analysts see no immediate financial risk to the company, but they do warn that the episode is a reminder of how quickly the mood of the crypto market can change.