Bitcoin fell on Tuesday, continuing to trim its recent gains, as progress toward ending the U.S. government shutdown and additional purchases by the largest corporate holders failed to support prices. The world’s largest cryptocurrency dropped 0.7% to around $105,355.
The decline came despite improved risk appetite in the markets following the U.S. Senate’s approval of a bill to end the government shutdown, which is set to be considered by the House of Representatives amid signs of possible passage. However, this development did not positively impact the crypto market, as investors preferred to allocate capital to other high risk assets, particularly stocks, with renewed momentum in technology shares attracting liquidity away from digital currencies.
Markets also received little support from Strategy Inc., the largest institutional Bitcoin holder, which announced the purchase of 487 new units this week, bringing its total holdings to around 641,692 units.
Meanwhile, renowned investor Jim Chanos, famous for his successful bet against Enron before its collapse in 2001, revealed that he closed his short positions on Strategy Inc. stock after its price fell to levels more reflective of the actual value of the company’s Bitcoin holdings. He noted that the enterprise value to net Bitcoin asset ratio dropped to 1.23x this year, compared to a peak of 2.5x when he opened his short positions, indicating potential for further downward pressure on the company’s valuation.
Strategy Inc.’s Class “A” shares have fallen more than 20% since the start of 2025, amid growing investor questions about the gap between the stock’s valuation and the real value of its Bitcoin holdings.
In the broader crypto market, prices moved in a narrow, mostly downward range in the absence of direct positive catalysts, with Bitcoin’s weakness spilling over to other cryptocurrencies. Ether fell 1.6% to around $3,549, XRP rose 0.9% to about $2.47, while Solana and Cardano each dropped over 1%, and BNB declined by 2.4%.
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