Strategy’s leadership is pushing back against growing concerns that the 
world’s largest corporate holder of Bitcoin (BTC) could face serious financial 
stress as the cryptocurrency’s price continues to slide. Speaking after the 
company released its fourth‑quarter results, CEO Phong Le sought to reassure 
investors that the firm remains well-positioned, even as Bitcoin fell close to 
$60,000 on Thursday. Bitcoin Sell‑Off Tests Strategy’s Financial Resilience 
Bitcoin dropped roughly 50% since reaching all‑time highs of $126,000 in 
October of last year, a period during which Strategy, formerly known as 
MicroStrategy, was aggressively accumulating the digital asset. The sell‑off 
has weighed heavily on the company’s share price. Strategy’s stock, trading 
under the ticker MSTR, sank to about $104 on Thursday, its lowest level since 
August 2024, after plunging more than 17% during the session. Related Reading: 
Bitcoin Crash Exposes Colossal Corporate Losses — Here’s Who’s Most Impacted 
For now, investors are focused on two key factors: the price of Bitcoin itself 
and Strategy’s ability to meet its financial obligations if the downturn 
deepens. Those questions loomed large as founder Michael Saylor and CEO Phong 
Le addressed analysts during the firm’s earnings call. Much of the attention 
centered on how Strategy would navigate a prolonged “Bitcoin winter,” should 
one materialize. Saylor has already taken steps to bolster the company’s 
financial flexibility, including raising a $2.25 billion cash reserve to cover 
preferred dividend payments totaling $888 million annually. However, investors 
remain uneasy about the company’s $8.2 billion in low‑ and zero‑interest 
convertible bonds, which could begin facing early redemptions starting in 
September 2027, particularly now that MSTR shares have fallen sharply. 
Politics, Leverage, And Valuation In Focus Saylor reiterated that the company 
is keeping its options open, including the possibility of selling Bitcoin if 
market conditions require it. He also framed crypto investing as inseparable 
from politics, pointing to President Donald Trump’s pro‑crypto stance and 
noting that Trump’s nominee for Federal Reserve (Fed) chair, Kevin Warsh, is 
viewed as supportive of digital assets. Still, Bitcoin fell through its 
post‑2024 election lows on Thursday, reflecting skepticism that the federal 
government will actively support Bitcoin purchases. Treasury Secretary Scott 
Bessent reinforced those doubts this week, telling Congress he lacks the 
authority to rescue Bitcoin markets. On the balance‑sheet front, CEO Phong Le 
addressed worries about Strategy’s leverage. He said the company operates with 
roughly one‑third the leverage of a typical high‑yield firm. Related Reading: 
Bitcoin Crashes Below $67,000 As Stifel Warns Of Potential Drop To $38,000 
According to Le, Bitcoin would need to decline by about 90% for Strategy’s 
Bitcoin reserves to merely equal the value of its convertible debt. Even in 
that extreme scenario, he said, the company would explore restructuring 
options if it could not convert the debt into equity. Strategy’s own 
disclosures show an enterprise value of about $49.95 billion, compared with 
roughly $45.33 billion worth of Bitcoin on its balance sheet. Enterprise value 
includes the company’s market capitalization, preferred shares, and 
convertible bonds, minus cash. If Bitcoin drops once again near $63,000, 
Strategy’s market cap of $35.57 billion would need to fall about 13% from its 
recent closing price of $106.99 to eliminate the valuation premium over its 
Bitcoin holdings. However, since Thursday’s crash, both Bitcoin and Strategy’s 
stock have made a significant recovery. Bitcoin, for example, has surged to 
around $69,256. MSTR has recovered above $130, marking a 20% increase in less 
than 24 hours and offering short-term relief. Featured image from OpenArt, 
chart from TradingView.com

Bitcoin Must Fall 90% For Years To Pressure Strategy’s Debt, CEO Says

According to Matt Hougan, chief investment officer at Bitwise Asset 
Management, much of the crypto complex already went through a down cycle last 
year even though headline coins looked steadier. Related Reading: Russia’s 
Biggest Exchange To Launch XRP Indices And Futures He points to heavy buying 
from ETFs and companies that kept Bitcoin, Ether, and XRP from showing the 
full brunt of those losses. Some tokens, without that same support, fell hard 
— in many cases by about 50%–60% — and behaved like past bear phases. 
Institutional Buying Accelerates Hougan Says ETF flows and corporate 
accumulation have shifted the balance. When institutions buy more than new 
supply, price pressure changes. That is what he highlights. “We ran the four- 
year cycle last year,&#8221; Hougan said. &#8220;We’re already at the bottom. I think 
we’re coming back up.” ETF purchases and corporate hoarding at times outpaced 
newly mined Bitcoin, creating a persistent bid under the market. Reports note 
the comparison to gold, where steady central bank buying first steadied prices 
and later helped fuel much bigger moves. “Just like gold eventually entered a 
parabolic move, Bitcoin will follow suit,&#8221; Hougan said. We’re just earlier in 
that process.” A Selective Altcoin Cycle Expected Investors are getting 
pickier. The next up-cycle, according to this view, will reward projects with 
clear use and steady activity, not every token with hype. Networks tied to 
stablecoins, tokenization, and real infrastructure work stand a better chance 
of drawing capital. Lower-quality projects that lack users or clear purpose 
could see little interest and remain sidelined. Bitcoin Price Action In the 
middle of these structural shifts, Bitcoin’s price has kept traders busy. 
Recently BTC slid from earlier peaks to roughly 60,000–65,000 before finding 
buyers and moving back above 65,000 amid a broader rebound. Geopolitical 
headlines pushed risk appetite up and down, and those swings helped produce 
one of Bitcoin’s rougher stretches in weeks. Reports say traders are watching 
headlines closely because news can prompt sudden outsized moves. Related 
Reading: Bitcoin Edges Past Gold In Appeal, JPMorgan Says A Slow Transfer From 
Old Hands To New Buyers Long-term holders are selling some coins while 
institutions move in. That hand-off can feel messy. A sale wall forms when 
investors who bought early decide to take profit, and large institutions step 
in to absorb that supply. That process has been observed in other asset 
classes as they mature, and it does not automatically mean demand is weakening 
over the long run. Featured image from Unsplash, chart from TradingView

Bitcoin Sell-Off May Be Done, Analyst Flags Recovery Signs

Multiple emerging crypto narratives could converge to fuel the next bull 
market, with structural growth drivers, institutional capital, and expanding 
blockchain use cases setting the stage for a powerful multiyear upswing, 
according to Bitwise CIO Matt Hougan. Bull Run Outlook Strengthens as 9 
Narratives Emerge, Says Bitwise CIO Bitwise Chief Investment Officer Matt 
Hougan shared […]

Crypto Bull Run Forming as 9 Major Forces Align, Bitwise Says

Bitcoin reaching a point where its price keeps rising even as the US Federal 
Reserve hikes interest rates would be &#8220;the endgame,&#8221; according to crypto 
executive Jeff Park.

Bitcoin’s next bull market may not come from more ‘accommodative policies’

The latest slide in Dogecoin (DOGE) is a reminder of how quickly sentiment can 
shift in a fragile crypto market. Once known for sharp rallies driven by 
social media buzz, the meme coin is now struggling to find a footing amid 
broader selling pressure that overshadows brief bursts of optimism. Related 
Reading: 5 Red Months In A Row: What’s Going On With Bitcoin And The Crypto 
Market? Despite another round of speculation linked to Elon Musk, DOGE has 
fallen below $0.09, reflecting a market more focused on risk reduction than 
hype-driven trades. The decline follows a short-lived reaction to Musk’s 
comments about a potential Dogecoin-related moon mission. The token initially 
rose by about 4%, but the move faded within hours. By the end of the session, 
DOGE had erased its gains and continued to slide in the days that followed. 
Currently, Dogecoin is trading around $0.08–$0.09, marking a weekly drop of 
more than 20% and pushing it below several key support levels. DOGE&#8217;s price 
trends to the downside on the daily chart. Source: DOGEUSD on Tradingview 
Dogecoin (DOGE) Selling Pressure Builds Across the Market Dogecoin’s weakness 
has unfolded alongside a broader crypto sell-off. Bitcoin’s breakdown, 
currently trading below $65,000 and major support levels, triggered widespread 
liquidations, pulling down high-risk assets such as meme coins. Total crypto 
market capitalization fell sharply, while the Fear and Greed Index dropped 
into “extreme fear” territory, signaling heightened caution among traders. 
This environment has limited the impact of Musk-related headlines. While his 
past remarks often sparked sustained rallies, recent reactions have been 
brief. Other meme tokens, including Shiba Inu, have followed a similar path, 
suggesting the move is less about DOGE-specific news and more about overall 
market stress. Technical Levels Under Pressure From a technical perspective, 
Dogecoin has broken below the $0.10 and $0.0950 support levels and briefly 
touched lows near $0.08. The price remains below key moving averages, backing 
the bearish trend. Analysts note resistance forming around $0.09–$0.0950, with 
additional barriers near $0.10 that would need to be reclaimed for any 
meaningful recovery. Momentum indicators continue to point lower, though some 
oscillators are approaching oversold levels. Trading volume has increased 
during the decline, indicating active participation rather than thin liquidity 
moves. Outlook Hinges on Macro Conditions For now, Dogecoin’s direction 
appears tied to broader market conditions rather than celebrity-driven 
catalysts. While some longer-term indicators suggest a potential basing phase 
could develop, short-term risks remain skewed to the downside. Related 
Reading: Bitcoin Edges Past Gold In Appeal, JPMorgan Says Unless selling 
pressure across crypto eases, DOGE may continue to test lower support zones, 
with market sentiment likely to remain cautious in the near term. Cover image 
from ChatGPT, DOGEUSD chart on Tradingview

Cryptocurrency price in AUD