Bitcoin Falls Below $100,000 as Market Faces Renewed Uncertainty

Bitcoin has unexpectedly plunged below $100,000, dropping around 20% since reaching its all-time high of $126,000 in early October. The decline comes amid growing concerns over potential changes in Federal Reserve policy that could reshape global markets.

The rally that began after U.S. President Donald Trump’s election victory last year has stalled, with the former president recently warning about China’s increasing role in the crypto space.

Corporate Sales Add Pressure to the Market

Adding to the market’s anxiety, New York Stock Exchange–listed chipmaker Sequans has become the first among nearly 200 new bitcoin treasury companies to sell part of its holdings. The Paris-based firm offloaded roughly 1,000 bitcoin—worth close to $100 million—to pay down debt, cutting its outstanding liabilities from $189 million to $94 million.

After the sale, Sequans’ bitcoin reserves stand at just over 2,200 BTC, valued at approximately $240 million. The move reduced its debt-to-net asset value ratio from 55% to 39%. Despite realizing a loss on the sale, the company framed the move as a strategic decision to stabilize finances.

Executives Defend Strategy Despite Heavy Losses

“Our bitcoin treasury strategy and deep conviction in bitcoin remain unchanged,” said Sequans CEO Georges Karam. “This transaction was a tactical decision aimed at unlocking shareholder value under current market conditions.”

The company’s stock price has fallen roughly 80% this year, briefly spiking in July after announcing its bitcoin purchases before resuming its decline.

Wider Industry Implications

Sequans’ sale reflects a broader trend among corporations that adopted bitcoin as a reserve asset following the example of Michael Saylor’s Strategy. Collectively, such bitcoin treasury firms—including GameStop and Tokyo-based Metaplanet, reportedly backed by President Trump’s sons—now hold around 1 million bitcoin, estimated at nearly $100 billion.

Swan Bitcoin CEO Cory Klippsten, who helped design Sequans’ treasury strategy, acknowledged that the company’s private investment in public equity deal was “too leveraged, at nearly 50%.” The bitcoin sale, he added, gives Sequans “greater flexibility and lower leverage, which could support future buybacks.”

Mounting Economic Fears

The market downturn coincides with warnings from Tesla CEO Elon Musk, who recently predicted a potential $38 trillion financial crisis and hinted at systemic risks to the U.S. economy. As bitcoin prices wobble and corporate holdings shift, analysts fear the current decline could mark the start of a deeper correction in the broader crypto market.