Why crypto is down

Bitcoin is at risk of falling below $90,000 as Microsoft shareholders prepare to vote on a proposal to add BTC to the company’s cash reserves, which is likely to be rejected.

The price of Bitcoin has fallen by more than 4% in the past 24 hours, reaching around $97,000 on December 10. This is also 6.40% below the record high of around $103,650 set five days ago.

BTC Falls Ahead of Key Microsoft Vote

Bitcoin’s intraday decline appears to precede a key vote by Microsoft shareholders on whether to add BTC to the company’s cash reserves.

On October 24, ahead of the US presidential election, Microsoft included a section in its Form 14A filing with the US Securities and Exchange Commission (SEC). Titled “Bitcoin Investment Assessment,” the document suggests that the company is considering Bitcoin as a potential asset diversification tool.

Despite the inclusion of the proposal, the “Board Recommendation” section advises shareholders to vote against it. Microsoft’s board of directors said that the company’s management has already made a thorough evaluation of the matter.

Interest in the keyword “Microsoft Bitcoin” on Google’s search engine increased ahead of the Dec. 10 vote, according to Google Trends data for the past seven days. Increased activity in searches for cryptocurrency keywords often reflects curiosity among retailers.

Interest in the keyword “Microsoft Bitcoin”

Today’s Bitcoin decline may be related to traders’ caution ahead of the Microsoft vote, especially given the board’s recommendation against adding of BTC to the company’s cash balance.

This may have tempered expectations, with traders positioning themselves for a potential broader price decline following the vote result.

Long-term Bitcoin holders take profits

The drop in Bitcoin price over the past 24 hours comes after significant coin movements among traders who have held BTC for 6-12 months.

These long-term holders moved approximately 179,000 BTC between December 4 and 7, according to data shared by blockchain data analyst Migno.

Age Chart of Bitcoin Spent

“These 6-12 month holdings largely consist of Bitcoin accumulated during the extended consolidation period from March to October of this year,” the analyst said, adding:

It is highly likely that these coins will now be realized as profits near the $100,000 level.

The ongoing correction in Bitcoin’s price coincides with elevated daily levels of relative profit/loss (P/L). This blockchain metric recently hit its all-time high since March 2024, a level seen when Bitcoin peaked at $73,400 in the first quarter of 2024.

Bitcoin Daily Realized P/L Ratio

Historically, high P/L ratios signal profit-taking by long-term holders, often seen near market peaks.

In some cases, however, a higher P/L ratio leads to capital rotation, where selling pressure from profit-taking is absorbed by retail investors during bullish phases, similar to what happened during the 2020-2021 bull market.