Bitcoin has fallen sharply over the past seven days, sliding 20% and trading at $65,976 as of writing, well below recent highs as volatility sweeps across global markets. The drop has already erased billions in market value and exposed how sensitive prices remain to large flows.
Against this backdrop, attention has shifted to Strategy, the single largest corporate holder of Bitcoin. What happens if that balance starts to move?
Strategy’s Growing Grip on Bitcoin Supply
Strategy now controls 713,502 Bitcoin worth roughly $54 billion, representing about 3.4% of the total 21 million coins that will ever exist. That equals one out of every 29 Bitcoins. The company’s January 2026 purchase of 22,305 BTC marked its largest single acquisition, funded through $2.1 billion in stock and preferred share sales.
Source: Strategy Bitcoin Holdings via X
Management continues to execute its 42/42 Plan, which targets $84 billion in capital through 2027 to expand its Bitcoin position.
Recent Selling Pressure Shows Market Sensitivity
Bitcoin’s latest drawdown offers a real-time example of how fast prices react to heavy selling. During one of the sharpest single-day drops on record, Bitcoin slid from about $73,100 to nearly $62,400, a decline of almost 15%.
That move alone triggered steep losses across crypto-linked equities. Strategy shares fell from around $120 to near $102 in after-hours trading, extending a decline that now exceeds 70% year over year. The episode highlights how concentrated selling can overwhelm short-term demand.
The Bitcoin pullback has reshaped Strategy’s financial picture. The company posted a $17.4 billion operating loss in the fourth quarter, driven almost entirely by unrealized Bitcoin losses. Net loss attributable to shareholders reached $12.6 billion.
With an average acquisition cost of roughly $76,052 per bitcoin, the recent drop pushed the firm from a $31 billion unrealized gain just months ago to an unrealized loss exceeding $9.2 billion. Balance sheet exposure now sits squarely in focus.
Scenario One: Minor Selling Could Still Move the Market
If Strategy sold just 1% of its holdings, roughly 7,100 BTC would enter the market in a short period. That amount exceeds the average daily net inflows seen on many major exchanges. A 3% sale, or about 21,000 BTC, would rival the size of its record January purchase but in reverse.
Such flows could deepen volatility, widen spreads, and pressure prices toward recent support zones as buyers step back.
Scenario Two: Mid-Range Sales Could Test Liquidity
A 5% to 10% sale would release between 35,000 and 71,000 BTC. That volume approaches the scale that fueled the recent 15% crash. Under similar conditions, traders could expect cascading liquidations, forced selling from leveraged positions, and a rapid slide toward the $30,000 level discussed by market participants.
Liquidity would thin fast as risk appetite fades. Can spot demand absorb that shock without deeper losses?
Scenario Three: Large Liquidation Could Destabilize the Market
A 20% sale would involve more than 140,000 BTC. A 50% reduction would place over 350,000 coins into circulation. Those numbers would dwarf typical exchange volumes and likely overwhelm institutional buyers in the short term.
Prices could gap lower as bids vanish, while volatility spikes across derivatives markets. Such a move would redefine supply dynamics overnight and challenge Bitcoin’s ability to stabilize quickly.
Only an $8,000 Bitcoin Crash Would Hurt the Company
In a recent meeting, Strategy leadership stated that Bitcoin would need to fall to $8,000 and remain there for years before debt servicing risks emerge. That stance reduces near-term expectations of forced selling.
Still, the firm’s scale means even strategic adjustments carry market-wide consequences. For now, investors watch one question closely. How much selling can Bitcoin absorb when one company controls this much supply?
Source: https://coinpaper.com/14353/here-s-what-could-happen-to-bitcoin-price-if-strategy-starts-selling
