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Bitcoin price volatility has shaken the entire crypto market. The world’s largest cryptocurrency dropped nearly 20% in 7 days. Bitcoin now trades close to $65,976. This sharp fall has erased billions in value. It has also reminded investors how fragile price stability is when large holders dominate supply and shown how quickly prices react during market stress.
Amid this turbulence, market focus has shifted to strategy. The company is the single largest corporate holder of Bitcoin. Strategy controls around 713,502 Bitcoin. This equals approximately 3.4% of the total supply. In simple terms, 1 out of every 29 Bitcoins lies on its balance sheet. Any selling move from such a holder could quickly reshape the Bitcoin price trend.
Strategy has aggressively expanded its position in recent years. The firm’s January 2026 purchase of 22,305 Bitcoin marked its biggest single buy. This deal alone cost the company over $2 billion. Management continues to follow its 42-42 Plan, targeting $84 billion in capital by 2027 to further grow Bitcoin holdings. This scale gives Strategy unmatched influence over Bitcoin supply dynamics.
Recent market action shows how sensitive Bitcoin price remains. During a single session, Bitcoin slid from $73,100 to nearly $62,400. The move wiped out nearly 15% in hours. Crypto-linked stocks followed the drop. Strategy shares fell sharply and have remained down more than 70% over the past year. Concentrated selling pressure proved enough to overwhelm short-term demand.
The price fall has also reshaped Strategy’s finances. The company reported a $17.4 billion operating loss in the fourth quarter. Unrealized Bitcoin losses drove most of the damage. With an average purchase price near $76,052 per coin, Bitcoin’s decline pushed Strategy into a paper loss exceeding $9 billion. Balance sheet exposure now sits under intense scrutiny.
Even small sales could move markets. A sale of just 1% would release over 7,000 Bitcoin. This volume exceeds daily net inflows on many exchanges. A 3% sale would add more than 21,000 coins to circulation. Such flows could pressure Bitcoin price toward recent support levels as liquidity thins.
Mid-range selling would test market depth further. A sale between 5% and 10% could release up to 71,000 Bitcoin. Similar volumes fueled previous crashes. Under stressed conditions, forced liquidations could follow. Bitcoin price could slide sharply if buyers retreat.
Large-scale selling would create deeper shockwaves. A 20% reduction would add over 140,000 Bitcoin to the supply. A 50% cut would release more than 350,000 coins. These numbers are far higher than normal trading volumes. Price gaps and extreme volatility would likely follow, and prices could fall sharply as buyers struggle to absorb the supply.
Strategy leadership has downplayed near-term risk. Executives have stated that Bitcoin would need to fall near $8,000 for years before debt pressure emerges. This stance reduces immediate fears of forced selling. The sheer size of Strategy Bitcoin holdings implies any adjustment could carry a system-wide impact.
Bitcoin price is now at a crossroads. Institutional inflows, ETF demand, and long-term holders provide support. However, supply concentration poses a structural risk. Investors continue to watch one key factor. How much selling can the crypto market absorb when a single firm controls such a large share of Bitcoin supply?
Also Read: Is This a Good Time to Buy Bitcoin as Price Crashes to $60K on $2.59B Wipeout
