Bitcoin Struggles Below $105K Despite Positive News Flow

MicroStrategy Adds 487 BTC, but Bitcoin Price Fails to React

Bitcoin extended its decline on Tuesday, dropping 0.9% to $104,180 despite seemingly favorable developments including progress on ending the U.S. government shutdown and fresh purchases by corporate giant MicroStrategy. The world’s largest cryptocurrency continues to face headwinds as investor capital flows toward traditional risk assets.

Government Shutdown Resolution Fails to Boost Sentiment

The U.S. Senate passed legislation aimed at resolving the government shutdown, marking a significant step toward stabilizing the world’s largest economy. The bill now moves to the House of Representatives for consideration on Wednesday, with the Republican majority signaling likely approval.

However, this positive macro development provided limited support to Bitcoin and broader crypto markets. Investors demonstrated a clear preference for traditional risk assets, particularly equities, over digital currencies. A notable rebound in technology stocks this week attracted substantial capital away from the crypto sector, highlighting the ongoing competition for investor dollars between asset classes.

The muted response suggests that Bitcoin’s recent struggles extend beyond macro uncertainties. Market participants appear to be reassessing crypto valuations in light of alternative investment opportunities offering attractive returns.

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MicroStrategy Adds 487 BTC Amid Valuation Concerns

MicroStrategy Inc., the world’s largest corporate Bitcoin holder, disclosed the acquisition of 487 coins during the week. This purchase brings the company’s total holdings to an impressive 641,692 BTC, reinforcing its commitment to the digital asset strategy despite market volatility.

Yet even this accumulation failed to generate enthusiasm among crypto traders. The lack of price reaction underscores growing market fatigue with MicroStrategy’s ongoing buying program, which has been a consistent feature throughout Bitcoin’s recent cycles.

The company’s aggressive Bitcoin acquisition strategy has increasingly come under scrutiny from investors questioning the sustainability of its business model and valuation metrics.

Jim Chanos Closes Short Position as Premium Evaporates

Legendary short seller Jim Chanos, renowned for his prescient Enron short before the company’s 2001 collapse, revealed over the weekend that he had unwound his short position on MicroStrategy. The decision came as the stock’s valuation compressed to levels more closely aligned with its underlying Bitcoin holdings.

Chanos initially targeted MicroStrategy due to the stock trading at a substantial premium over its Bitcoin assets. Following an extended selloff over the past month, that premium has largely evaporated, eliminating the rationale for maintaining the short position.

“Strategy’s multiple of Enterprise Value to Bitcoin Net Asset Value (mNAV) had effectively halved this year to 1.23x, from a peak of 2.50x,” Chanos noted in a social media post. He added that additional value compression remains possible despite the significant decline already experienced.

MicroStrategy’s Class A shares have tumbled 20.4% in 2025 alone, reflecting investor skepticism about the company’s premium valuation strategy. The stock’s performance highlights the challenges faced by Bitcoin proxy investments in the current market environment.

SoFi Breaks New Ground with Crypto Trading Launch

SoFi announced Tuesday it would begin offering cryptocurrency trading services to customers, marking a historic milestone as the first U.S. bank to provide direct access to digital assets. The move signals growing mainstream acceptance of crypto as regulatory clarity improves and adoption expands.

The fintech platform will enable users to buy, sell, and hold major tokens including Bitcoin, Ethereum, and Solana. Rising retail participation and increasing institutional involvement have fueled renewed activity in crypto markets, creating opportunities for platforms positioned at the intersection of traditional finance and digital assets.

“SoFi is the first bank in the U.S. to offer crypto trading and investing,” CEO Anthony Noto stated. “The product we’re launching today is for retail members, but institutional access is right around the corner.”

The announcement represents a significant validation of cryptocurrency’s staying power in the financial ecosystem. While digital assets remain highly volatile, sustained investor interest in accessing these markets continues to build across demographic segments.

Altcoins Mirror Bitcoin’s Weakness

Broader cryptocurrency markets traded in negative territory, lacking direct positive catalysts to drive momentum. Bitcoin’s weakness predictably spread across alternative coins, with most major tokens posting declines.

Ether, the second-largest cryptocurrency, fell 1.9% to $3,514.57, while XRP dropped 3.3% to $2.44. Smart contract platforms Solana and Cardano declined 3.2% and 2% respectively, demonstrating the correlated nature of crypto price movements.

Even meme tokens couldn’t escape the bearish sentiment. Dogecoin and $TRUMP each slipped over 2%, reflecting reduced risk appetite across speculative segments of the market.

The uniform weakness across crypto assets suggests sector-specific headwinds beyond individual project fundamentals. As traditional markets continue to attract capital flows with strong equity performance, cryptocurrencies face an uphill battle to regain investor attention and momentum in the near term.