Bitcoin Price Plunges as Middle East Tensions Escalate and Strategy Inc. Funding Model Cracks

Bitcoin's price took a hit on Thursday, falling nearly 5% to around $62,500 as geopolitical tensions escalated in the Middle East and concerns grew about Strategy Inc.'s ability to fund its Bitcoin purchases.

The conflict between Israel and Lebanon has rattled financial markets, with data from CoinGlass showing $579.43 million in crypto liquidations over 24 hours, of which $496.62 million came from long positions. Over 139,000 traders were affected, with Bitcoin leading the way at $191.49 million in liquidated positions.

Strategy Inc.'s STRC preferred shares have fallen below their par value of $100, raising fears that the company may be forced to sell its Bitcoin holdings to raise capital.