Morning Minute: Bitcoin Falls Below $67k as MSTR Plummets

The fallout from Saylor’s first Bitcoin sale in years keeps spreading, while Bernie Sanders and Elizabeth Warren want crypto out of your 401(k).

By Tyler Warner

Edited by Stephen Graves

Morning Minute is a daily newsletter written by Tyler Warner. The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt. And check out our new daily news show covering all of the top stories in 5 minutes, downloadable on Apple Pod or Spotify.

Today’s top news:Crypto majors continue fall, down another 3-5%; BTC at $66,800Alts post big day led by LIT, WLD, ENA, NEAR and ZECCoinbase market buys ENA token as the two prepare for new partnershipWSJ features Hyperliquid as primary place for weekend and after-hours marketsSenators Sanders and Warren push for crypto to be blocked from 401ks

It appears the fallout from Saylor’s Bitcoin sales isn’t over yet.Bitcoin crashed below $67,000 on Tuesday with over $1.4B in longs liquidated across crypto. ETH fell below $1,900 and SOL fell sub-$74.The sell-off is now being driven by a 10-day Bitcoin ETF outflow streak now exceeding $3 billion, and Strategy’s first Bitcoin sale in four years destabilizing the market’s most reliable narrative.Strategy shares closed down more than 9% on Tuesday, now more than 70% off their 52-week high of $457.22, trading at $136.08. It’s down nearly 15% in the last five trading days and more than 23% on the month. Bitcoin itself has fallen roughly 46% off its all-time high of $126,080.

Meanwhile, STRC, the product Saylor is apparently trying to prioritize, fell to $96.90. That’s nowhere near its $100 par value, and with just 9 trading sessions left until this month’s dividend date, it’s unclear STRC will get back to par. When STRC trades below par, Strategy cannot issue new shares at $100 efficiently, and new issuances are the primary mechanism funding both Bitcoin purchases and dividend obligations.

Following the $1.5 billion repurchase of convertible debt, Strategy’s cash reserves have fallen to roughly $871 million, covering only about six months of its estimated $1.7 billion annual preferred dividend obligations. So their primary method of raising cash will be by selling MSTR—which likely will drive MSTR down unless big buyers step in.As a result, the near-term future for Bitcoin just became much murkier…

Senators Bernie Sanders and Elizabeth Warren urged the Labor Department to drop a proposal to make it easier to offer crypto in 401(k) plans, arguing the rule weakens fiduciary standards and could expose retirees to greater risk.The lawmakers also said the policy could enrich President Donald Trump and his family by expanding access to crypto products tied to them.The proposal in question originated from a Trump executive order directing the Labor Department to pave the way for alternative assets in retirement accounts. The March rule creates a safe harbor for fiduciaries who offer alternative investments, including digital assets, private equity, private credit, real estate, and annuities, inside 401(k) plans, so long as fiduciaries can demonstrate they weighed relevant factors.

Though Sanders and Warren expressed concerns this week about weakening retirement-related fiduciary standards generally, they also underscored the particular volatility of crypto investments—and questioned the motives of Trump and other crypto entrepreneurs who have celebrated the policy shift.“The DOL’s efforts to weaken safeguards that deter retirement saving funds from being invested into volatile and largely unregulated digital assets would jeopardize Americans’ hard earned income and benefit the digital asset industry at the cost of Americans’ retirement savings,” the lawmakers wrote.Analysts have estimated that exposing American retirement savings accounts to the crypto market could infuse the sluggish sector with hundreds of billions of dollars in investment in the medium-term. Editor’s note: This story was updated after publication to include the response from the Labor Department.