Bitcoin Drops Below $70K: Analyst Says Strategy ‘Slayed The Sacred Cow’ With Rare BTC Sale

• Strategy sold 32 BTC between May 26 and 31 but still holds 843,706 BTC, its first reduction in more than three years.
• Bitcoin fell 4% to below $70,000 after the sale broke a long accumulation streak and raised concerns that one of the market's most reliable buyers may pull back.
• James Check of Checkonchain called the move a "slay the sacred cow" de-risking event, signaling that Strategy will sell BTC to meet obligations rather than liquidate.

Bitcoin (BTC) fell about 4% to trade below $70,000 on Tuesday, as markets digested Strategy’s (MSTR) first cut to its Bitcoin holdings in more than three years.

The company announced on Monday that it sold 32 BTC between May 26 and May 31, for an average of $77,135 per coin, or $2.5 million. This is the second time Strategy’s Bitcoin balance has decreased nominally since the firm’s last sale in December 2022, when it sold 704 BTC. However, Strategy still holds 843,706 BTC. 

The market did not take the news well. The disposal ended a long-standing trend of accumulation and sparked fears that one of the market’s most consistent buyers could become less active. Traders and trading algos have viewed the move as a near-term bear signal. 

“I sternly believe that if Saylor never bought a single BTC, BTC would be roughly the price it is right now or higher,” said one crypto Key Opinion Leader, DonAlt. At the same time, he added that the firm’s leveraged treasury exposes it to risks of dilution, dividend commitments, and the prospect of forced selling, which may deter some buyers. “And we wouldn't have the Saylor baggage / ponzi structure keeping people from buying on top of it all. But at least he and his stock bagholders got super rich,” said DonAlt.

Bitcoin’s price was trading at $69,812 at the time of writing. On Stocktwits, Bitcoin was the top trending ticker. Retail sentiment around BTC remained in the ‘extremely bearish’ zone, while chatter stayed at ‘normal’ levels over the past day.

Analyst Says Selling More Bitcoin Could Be ‘Catastrophic’

Checkonchain analyst James Check had a different take on the sale, describing it as a calculated attempt to “slay the sacred cow”—a sign that Strategy would sell Bitcoin to meet its obligations rather than risk a forced liquidation in the future. "They sold it because they needed to slay the sacred cow," Check wrote, arguing that the move is a longer-term de-risking event that removes uncertainty for the firm’s debt and preferred-stock holders.

Check said that Strategy has a “fiduciary duty” that “requires them to act in the best interest of their stakeholders.” Check said that the Bitcoin held by the company is not included in the firm’s overall capital stack and is only listed as an asset on the balance sheet. 

Check also flagged a downside threshold to monitor: Strategy has total obligations of roughly $21.29 billion, which its treasury would cover at a Bitcoin price of about $25,200. At that level, Check calculates that the residual equity value of the MSTR stock would be mathematically zero. He called the situation a real, but unlikely, tail risk.

MSTR’s stock closed over 5% on Monday, and down 2% in the pre-market trade. On Stocktwits, MSTR was one of the top 10 trending tickers. Retail sentiment around MSTR remained in the ‘bearish’ zone, while chatter moved to ‘high’ levels from ‘normal’ levels over the past day.

Bearish Calls Intensify 

Popular crypto analysts, twin brothers Aaron Arnold and Austin Arnold, said on Altcoin Daily that Bitcoin had “officially broken down,” after what it described as a second bear flag playing out. 

The pattern preceded a 30% drop the last time it appeared, Altcoin Daily said. The account said a similar move would put Bitcoin at around $50,000, which it described as a worst-case scenario. Instead, it said a pullback to the 200-week moving average near $62,000 was more likely—a level they called potentially “healthy,” and one that has historically marked cycle bottoms in each of Bitcoin’s four prior bear markets. The account hedged that the correction may already be over, adding that "nobody can see the future."

Read also: Tom Lee Says Crypto Investors Are 'Rage Quitting' After Mark Cuban Dumped All His Bitcoin

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