Bitcoin Falls 14% This Week as Capital Rotates to IPOs

Bitcoin fell as low as $61,300 before climbing back to $62,500, down 1% over the past 24 hours, according to CoinDesk data. The world's largest crypto has slumped 14% this week and is now more than 50% down from its record high of $126,272 reached in October last year. Digital assets got caught up in the tech selloff, with Strategy ($MSTR), formerly MicroStrategy, revealing it sold 32 Bitcoin last week—representing approximately meaningfully of its 843,706 BTC balance sheet holdings—marking the company's first Bitcoin sale in years. BitMine Immersion Technologies filed with the SEC to launch a Series A Perpetual Preferred Stock offering, 3 million shares at $100 per share, carrying a 9.5% cumulative annual dividend, with proceeds earmarked explicitly for Ethereum acquisition, ETH staking infrastructure expansion, and ecosystem investment.

Strategy ($MSTR) Chairman Michael Saylor attributed the ongoing decline in Bitcoin's price to capital rotation out of crypto and into AI stocks, as the company announced its first Bitcoin sale in years. The company sold 32 Bitcoin from its treasury of 843,706 BTC, representing approximately meaningfully of its total holdings. $MSTR shares showed technical weakness, with the stock posting an average drawdown of -28% across 15 major systemic shocks in which it has traded, compared to the S&P 500's average -16% decline during those same periods. Coinbase ($COIN) partnered with Better Home & Finance to close what was described as the first Fannie Mae-backed, Bitcoin-collateralized mortgage in the U.S., allowing qualified homebuyers to use Bitcoin and USDC held with $COIN as collateral for a Fannie Mae eligible home loan. Technical weakness in Bitcoin is beginning to spill over into $MSTR and $COIN, with both stocks showing deteriorating chart patterns and growing downside risk.

Coinbase ($COIN) and Better Home & Finance completed the first Fannie Mae-backed home loan using Bitcoin as collateral, marking a new link between digital assets and the established U.S. housing finance program. The product lets qualified homebuyers use Bitcoin and USDC held with $COIN as collateral for a Fannie Mae eligible home loan. For investors watching $COIN, this move connects the exchange more directly with U.S. housing finance infrastructure. Robinhood ($HOOD) CEO Vlad Tenev released a cryptic teaser pointing to a London event where the brokerage appears ready to unveil products that could reshape global crypto access.

Robinhood ($HOOD) stocks headed lower despite two major catalysts: the elimination of the PDT rule and the upcoming SpaceX IPO, which the brokerage is opening to everyday investors. $HOOD is once again putting retail investors at the front of a marquee offering, though the larger significance lies in what that access does for its platform. Meanwhile, Fidelity is letting customers with as little as $2,000 in a trading account submit offers to buy SpaceX at the IPO price. PayPal Holdings ($PYPL) is under fresh scrutiny after an updated valuation model set fair value at $51.35, down from $53.00, with the stock down 7.9% since its last earnings report 30 days ago.

The crypto market faces continued pressure from capital rotation into traditional equity IPO markets, particularly the high-profile SpaceX offering that has drawn retail and institutional attention. Strategy's ($MSTR) first Bitcoin sale in years signals potential shifts in corporate treasury strategy among Bitcoin-holding companies, though the 32 BTC sale represented only approximately meaningfully of its 843,706 BTC holdings. The successful closing of the first Fannie Mae Bitcoin-backed mortgage by Coinbase ($COIN) could open new use cases for digital assets in traditional finance, though adoption will depend on regulatory clarity and market conditions. Robinhood's ($HOOD) teased London event and potential new crypto products could provide catalysts for the sector if broader market sentiment stabilizes.