Bitcoin Plunges Nearly $5,000, Liquidating 270,000 Accounts, MicroStrategy Stock Follows Suit

Bitcoin Plunges Nearly $5,000, Liquidating 270,000 Accounts, MicroStrategy Stock Follows SuitOn November 12, Bitcoin suffered a sharp plunge after breaking through $90,000, losing nearly $5,000 in just 3 hours. This volatility resulted in the liquidation of over 270,000 accounts, with total losses exceeding $1

Bitcoin Plunges Nearly $5,000, Liquidating 270,000 Accounts, MicroStrategy Stock Follows Suit

On November 12, Bitcoin suffered a sharp plunge after breaking through $90,000, losing nearly $5,000 in just 3 hours. This volatility resulted in the liquidation of over 270,000 accounts, with total losses exceeding $1.058 billion.

According to Investing.com, Bitcoin reached a 24-hour high of $90,070.1 before plummeting to around $85,500. At the time of writing, Bitcoin is trading at $86,090.

Besides Bitcoin, other cryptocurrencies also experienced rapid declines. Ethereum, which had briefly surged to $3,449, is now down nearly $200.

Data from Coinglass reveals that over 278,000 accounts were liquidated in the past 24 hours, with a total loss exceeding $1.058 billion.

This significant price fluctuation in Bitcoin is attributed to the recent surge in the cryptocurrency market and the cooling off of the "Trump trade."

On the evening of November 11, Bitcoin prices skyrocketed abruptly after MicroStrategy, a publicly traded company and major Bitcoin holder, announced the purchase of approximately 27,200 Bitcoins for about $2.03 billion, marking its largest buy since December 2020. This news propelled MicroStrategy's stock price to soar, surging over 30% intraday. The stock ultimately closed over 25% higher, pushing its market capitalization to $68.9 billion.

MicroStrategy has consistently invested in Bitcoin in recent years, using it as a hedge against inflation. As of September this year, the company held over 250,000 Bitcoins, valued at over $17 billion by October 31.

MicroStrategy's stock price is deeply tied to Bitcoin. Since 2024, MicroStrategy's stock has accumulated a 438% gain, while Bitcoin's cumulative increase stands at 101% during the same period.

Besides MicroStrategy, BlackRock's $35 billion iShares Bitcoin Trust has emerged as a major Bitcoin holder. Last Thursday, the fund witnessed a record daily net inflow of nearly $1.4 billion, exceeding the assets under management of BlackRock's $33 billion iShares Gold Trust. Currently, BlackRock's Ethereum ETF holds over 500,000 coins, while its Bitcoin ETF holds over 450,000.

However, as the "Trump trade," fueled by Donald Trump's open stance on cryptocurrencies, cools off, the cryptocurrency market has seen a pullback. On Tuesday (November 12), all three major US stock indices futures declined slightly in pre-market trading. At the time of writing, the Dow Jones Industrial Average futures are down 0.08%, the S&P 500 futures are down 0.09%, and the Nasdaq 100 futures are down 0.12%.

On the individual stock front, "Trump-related" stocks like Tesla opened sharply lower, plunging over 4%, and are currently down over 3%. Trump Media & Technology Group opened over 8% lower and is now down over 6%. MicroStrategy's stock also witnessed an initial drop of over 4% at the open and is currently down over 2%.

This Bitcoin crash serves as a reminder to investors that the cryptocurrency market is highly volatile and risky. Investors are advised to exercise caution.