Bitcoin Slips to $105K as Shutdown Progress and Strategy Buying Fail to Lift Prices
Bitcoin continued to lose ground on Tuesday, retreating further from its recent recovery despite optimism over progress to end the U.S. government shutdown and renewed buying by top corporate holder Strategy Inc.
The world’s largest cryptocurrency fell 0.7% to $105,355.6 by 00:25 ET (05:25 GMT), as investors shifted attention toward equities following a rebound in global stock markets.
Shutdown Progress Offers Limited Support to Bitcoin
Bitcoin showed little reaction to positive news from Washington, where the U.S. Senate passed a bill to reopen the government and end the record-long shutdown. The bill now moves to the House of Representatives, which is expected to approve it by Wednesday before sending it to President Donald Trump for final approval.
While the development improved overall market sentiment, traders largely favored stocks over crypto, with rising tech shares drawing in most of the fresh capital. As a result, Bitcoin’s upside remained capped despite improving risk appetite.
Strategy Adds to Bitcoin Holdings but Market Stays Unimpressed
Bitcoin also failed to gain momentum after Strategy Inc (NASDAQ: MSTR)—the world’s largest corporate Bitcoin holder—disclosed another purchase of 487 BTC this week. The acquisition brought the firm’s total holdings to 641,692 coins.
However, the move did little to inspire confidence among crypto traders, as concerns over market consolidation and valuation pressures continued to weigh on sentiment.
Short Seller Jim Chanos Exits Strategy Position
Famed short seller Jim Chanos, known for predicting Enron’s collapse in 2001, announced that he had closed his short position in Strategy after the company’s stock value dropped to align more closely with the value of its Bitcoin holdings.
Chanos originally shorted Strategy due to its high premium over net Bitcoin assets. According to his social media post, Strategy’s Enterprise Value-to-Bitcoin Net Asset Value (mNAV) ratio has fallen to 1.23x in 2025—down from 2.50x earlier this year—suggesting reduced valuation excess.
Despite this correction, Chanos noted that there may still be “room for further value compression.” Strategy’s Class A shares are down over 20% year-to-date, as investors increasingly question the company’s Bitcoin-linked premium.
Altcoins Drift Lower Alongside Bitcoin
The broader cryptocurrency market traded mostly flat to lower, reflecting the weakness in Bitcoin. Ether (ETH) dropped 1.6% to $3,549.22, while XRP gained 0.9% to $2.4739.
Other major tokens such as Solana (SOL) and Cardano (ADA) each slipped more than 1%, and BNB lost 2.4%.
Among meme coins, Dogecoin (DOGE) declined 1.5%, while $TRUMP surged 4.2%, defying the broader market trend.
