Bitcoin rebounds above $63,000 after 18% plunge last week. Has the crypto selloff run its course? What next?

Bitcoin was stable in early Asian trading on Monday after recovering some of its recent losses. The cryptocurrency had fallen below $60,000 late last week — its lowest level since Donald Trump’s 2024 reelection.

On Monday, Bitcoin was up as much as 3.8% to nearly $64,200. It was trading around $63,000 at 9:45 am in Singapore. Ether, the second-largest token, was more than 3% firmer at around $1,680.

What drove the recovery today?

A signal from Strategy’s Michael Saylor that the digital-asset treasury may soon announce additional Bitcoin purchases has helped soothe the market.

Strategy’s Michael Saylor posted:

In another post, he said: “Bitcoin Fundamentalist: Bitcoin reaches its full potential by remaining true to its core principles: self-custody, personal nodes, decentralization, immutability, and use as money. Fundamentalists seek to protect Bitcoin from corruption, capture, or compromise.”

Following this, Richard Galvin, executive chairman at crypto investment firm DACM, said the market looked oversold and Saylor’s post on X this morning “suggests he has been buying.”

“The key short-term determinant of crypto market direction will likely be Strategy’s 8-K filing in the US morning, which will make it clearer what the company has done over the last few days,” he told Bloomberg, referring to a filing with the US Securities and Exchange Commission.

Still, traders didn’t appear convinced that the turnaround was durable. “We reduced our portfolio across the board and increased our cash levels to the highest they have been in two years,” Galvin said.

How much did Bitcoin drop last week and what triggered the loss?

Bitcoin fell as much as 7% to $59,101, its first time since October 2024, during trading in New York on Friday. Since hitting a record high of over $126,000 in October last year, its value has dropped by more than 50%.

Last week's drop was fueled by a combination of investors pulling money from Bitcoin-tied exchange-traded funds, renewed geopolitical tensions and growing concerns about the durability of one of the market’s most important sources of demand.

Adding to it, Strategy’s disclosure that it had sold a small amount of Bitcoin — its first sale in four years — contributed to the token’s 18% decline, as it undermined the narrative that it would never sell.

What next?

“Sentiment is incredibly shaky,” said Pratik Kala, a portfolio manager at Apollo Crypto, a digital-asset hedge fund, adding much will depend on what Strategy does next.

“We bought a lot of downside protection via puts,” he said. “There is always a mean reversion trade after a big dump. Some algos and traders step in, whilst others may be optimistic that Saylor and Strategy have a bigger plan.”

Meanwhile, CoinSwitch Markets Desk shows despite the price decline, on-chain data suggests long-term holders are not panic selling, which is a positive sign for market stability.

For now, $60K is the key support level for Bitcoin, while a move back above $65K–$66K would be the first sign that sentiment is starting to recover.