Despite $50,000 Outlook in Citrini AI Report, Strategy Continues to Scoop Up Bitcoin

▲ Artificial Intelligence (AI), Bitcoin (BTC) / ChatGPT-generated image ©

Amid fears of a massive economic collapse triggered by artificial intelligence (AI) and tariff uncertainty under the Donald Trump administration, Bitcoin (BTC), the leading cryptocurrency, has fallen by half from its peak. Despite posting $10 billion in unrealized losses, major investment firm Strategy continues to accumulate Bitcoin, drawing significant market attention.

According to DL News on February 24 (local time), Bitcoin dropped an additional 3% during Tuesday’s trading session, slipping below the $63,000 level. This marks a staggering 50% plunge from its October high of $126,000. Matt Howells-Barby, Vice President of Growth at Kraken, warned that escalating geopolitical tensions could weigh on Bitcoin in the short term, potentially driving it down to $50,000. Data from DefiLlama shows that more than $1 billion in spot Bitcoin ETF outflows occurred in February alone, while major hedge funds reduced their ETF holdings by 28% in the fourth quarter, reflecting growing market fear.

Despite the severe downturn, digital asset treasury firm Strategy announced on Monday that it purchased an additional $40 million worth of Bitcoin. The company now holds a total of $55 billion in Bitcoin at an average purchase price of $76,020, but is currently facing approximately $10 billion in unrealized losses based on current prices. Nevertheless, Chairman Michael Saylor dismissed concerns in a podcast interview, describing the move as part of a routine dollar-cost averaging strategy.

Another key negative factor weighing on the market is a bleak AI report released by Citron Research. Titled “The 2028 Global Intelligence Crisis,” the report warns that advances in AI could trigger widespread white-collar layoffs, weaken consumer spending, and ultimately damage the broader economy. As the alarming scenario spread, traditional markets also fell into panic, with the Dow Jones Industrial Average plunging more than 800 points and IBM shares tumbling 13% in a single day. BlackRock’s flagship technology ETF, which tracks leading tech stocks, has also declined 24% so far this year.

The report cautions that AI-driven job losses could spill over into the housing and financial sectors, potentially sending the S&P 500 down about 38%, and urged investors to reassess long-term risks associated with AI. In contrast, Maelstrom CIO Arthur Hayes offered a contrarian view, arguing that AI-induced employment disruption could ultimately become a major bullish catalyst for Bitcoin. He claimed that if laid-off white-collar workers default on loans and trigger an economic crisis, the Federal Reserve would have no choice but to unleash unlimited monetary stimulus to prevent a 2008-style recession, at which point Bitcoin could surge dramatically.

The cryptocurrency market remains under selling pressure as it searches for direction. Over the past 24 hours, Bitcoin has fallen about 5% to $62,998, while Ethereum (ETH) has also declined roughly 5% to $1,825, reflecting frozen investor sentiment.

Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from its use. The information provided should be interpreted for informational purposes only.