Bitcoin climbed back above $60,000 on Tuesday after a sharp sell-off pushed the cryptocurrency below that level last week for the first time since October 2024. The digital asset has lost roughly 27% of its value since the start of 2026 and remains about 50% below its record high, according to market data cited by CNBC. The decline unfolded against broader market volatility driven by geopolitical uncertainty and shifting investor attention toward artificial intelligence investments, while trading activity tied to crypto-related equities remained elevated, with the iShares Bitcoin Trust ETF (IBIT) ranking among the 20 most actively traded tickers in the options market by volume on Monday.
Bitcoin Recovers Above $60,000 After Sharp Decline
Bitcoin climbed back above $60,000 on Tuesday following a sell-off that pushed the cryptocurrency below that threshold last week for the first time since October 2024. The digital asset has lost roughly 27% of its value since the start of 2026 and remains about 50% below its record high, according to market data cited by CNBC.
The decline occurred against a backdrop of broader market volatility, heightened by geopolitical uncertainty and shifting investor attention toward artificial intelligence-related investments. Global markets have also been grappling with concerns over interest rates and economic growth, with cryptocurrencies and crypto-linked stocks among the sectors hit hardest in recent weeks, according to Reuters.
Strategy Trader Executes $56 Million Options Spread
One of the largest options transactions involved Strategy, the company formerly known as MicroStrategy and known for its bitcoin holdings. According to CNBC's review of options market activity, a trader sold 29,425 August 21 $125 call options and used the proceeds to purchase June 18 $180 calls, generating an estimated $56 million credit.
The position was structured as a diagonal spread and would benefit most if Strategy shares remain below $125 through the August expiration date. CNBC noted that the setup allows the trader to retain the full credit collected if both options expire worthless.
Strategy Sells 32 Bitcoin Between May 26 and May 31
Strategy disclosed its first bitcoin sale since 2022. The company sold 32 bitcoin between May 26 and May 31, raising approximately $2.5 million to help fund preferred stock distributions, according to company filings reported by Reuters.
The sale, while representing only a tiny fraction of Strategy's holdings, weighed on investor sentiment across the crypto sector. Bitcoin fell sharply following the disclosure, while shares of Strategy and several crypto-related companies also declined, according to The Wall Street Journal. The company went back to buying bitcoin days later.
Coinbase Options Trade Signals Long-Term Positioning
Another major options trade involved Coinbase. CNBC reported that a trader sold 10,990 June 18 call options for approximately $4.9 million while purchasing about $26 million worth of August 21 $160 calls.
The structure benefits from time decay on the short-term options but leaves the trader positioned for a potential recovery in Coinbase shares over a longer period. CNBC reported that the August calls would require Coinbase stock to rise above roughly $183.40 to become profitable.
Coinbase has struggled alongside the broader crypto market this year. The exchange operator has faced softer trading activity as cryptocurrency prices weakened and investor enthusiasm shifted toward other areas of the market. Reuters reported in May that Coinbase posted a second consecutive quarterly loss as lower trading volumes weighed on revenue.
Market Context and Expert Perspective
CNBC reported that two of the largest options trades by dollar value on Monday involved Strategy and Coinbase Global. Bitcoin's decline has coincided with broader weakness in speculative assets. The cryptocurrency fell below $60,000 last week amid a wider sell-off in risk assets, while concerns over global growth, interest rates, and ongoing geopolitical tensions contributed to market uncertainty, according to Reuters.
Speaking to CNBC, Fundstrat Head of Research and BitMine chairman Tom Lee said bitcoin's long-term appeal remains tied to its underlying network and proof-of-work architecture, even as the market experiences significant volatility.
FAQ
What happened to Bitcoin's price on Tuesday?
Bitcoin climbed back above $60,000 on Tuesday after falling below that level last week for the first time since October 2024. The digital asset has lost roughly 27% of its value since the start of 2026 and remains about 50% below its record high, according to market data cited by CNBC.
What did Strategy sell between May 26 and May 31?
Strategy sold 32 bitcoin between May 26 and May 31, raising approximately $2.5 million to help fund preferred stock distributions, according to company filings reported by Reuters. This represented the company's first bitcoin sale since 2022.
What options trade did a Coinbase trader execute?
A trader sold 10,990 June 18 call options for approximately $4.9 million while purchasing about $26 million worth of August 21 $160 calls, according to CNBC. The August calls would require Coinbase stock to rise above roughly $183.40 to become profitable.
