Bitcoin Falls Below $70,000 Pressures Strategy

Bitcoin fell to about $68,369 on Friday, its lowest level since August and nearly half off the recent peak in the mid-$80,000s. The selloff has been driven by renewed inflation worries, the prospect of further rate increases and a broader retreat from risk assets. That backdrop has also hurt crypto-linked equities: Coinbase has fallen to $127.64, while Strategy closed at $111.62, both far below their recent trading ranges.

For Strategy, the debate goes beyond mark-to-market losses. The company has long argued that holding Bitcoin is a superior store of value over time, but Schiff’s criticism strikes at the heart of the bull case: if the asset continues to trade below the company’s average cost, investors may begin to focus less on long-term conviction and more on balance-sheet risk, dilution potential and the sustainability of its accumulation model. That is especially relevant when Bitcoin sentiment, according to Adalytica’s Fear & Greed gauge, sits at 39 — neutral, but still fragile after a 7-point drop on the day.

The technical picture reinforces the strain. Bitcoin is trading below its 50-day and 200-day moving averages, with RSI near 28, a level that points to a deeply oversold market but not yet a clean reversal. Strategy’s own shares show similar damage, with RSI around 28.5 and the stock well below both its 50-day and 200-day moving averages. Coinbase is also trading beneath its 50-day and 200-day averages, underscoring how the weakness is being transmitted through the broader crypto equity complex.

Investors now face two competing narratives. The bullish case is that extreme pessimism often precedes a rebound, especially if inflation data eases and central banks soften their tone. Bitcoin’s long-term supporters will also argue that treasury buyers with multi-year horizons can absorb short-term volatility and ultimately benefit if the asset recovers. The bearish case is that higher-for-longer rates, tighter liquidity and repeated drawdowns erode the appeal of Bitcoin as a corporate reserve asset, especially for shareholders who did not sign up for the volatility.

For now, Schiff’s attack matters because it crystallizes a broader market question: whether Strategy is a visionary balance-sheet trade or an increasingly costly bet on a rebound that has yet to arrive. If Bitcoin stabilizes, the criticism will fade quickly. If it keeps slipping, the company’s average entry price could become a more important reference point for investors than any long-term thesis.