Bitcoin price news: BTC slips below $88,000, but Strategy, Circle, Gemini among those sharply lower
Bitcoin fell below $88,000 as crypto stocks, especially digital asset treasury companies, suffered steep declines driven by year-end tax-loss selling.Summary
Bitcoin dropped by about 1% to just under $88,000 on Tuesday, contrasting with gains in traditional assets like gold and silver. Crypto-related stocks experienced much steeper declines, with digital asset treasury companies being the hardest hit; for example, Strategy (MSTR) fell 4.2%, and ETHZilla (ETHZ) dropped 16%. Analysts at QCP Capital suggest that tax-loss harvesting, where investors sell underwater positions to realize losses for tax purposes, is driving this year-end action, particularly in illiquid markets. Furthermore, reduced open interest in perpetual futures has made crypto markets more susceptible to volatility ahead of a large options expiry. Experts anticipate that these holiday-driven moves will likely fade in January, expecting consolidation without a major catalyst to recover recent highs until well into the next year.
(Source：CoinDesk)