Strategy's $100 Peg Breaks – Is Bitcoin Losing Its Biggest Demand Driver?

Bitcoin [ $BTC ] collapsed under extended bearish pressure, touching a low of $59k for the first time since 2024. At press time, Bitcoin traded at $62,732, down 28% YTD and 40% on yearly charts. With $BTC locked in a strong bearish trend, community tensions have predictably risen and the finger-pointing has begun. Amid the blame game, Bitcoin's largest corporate holder, Strategy, has taken the heat.

Strategy's Bitcoin peg is broken

Critics have pointed to Strategy as the main culprit behind prevailing market conditions. Strategy has been the top public buyer this year, issuing high-yield STRC shares to fund its purchases. One analyst noted that Michael Saylor's $100-per-Bitcoin strategy was the biggest driver of $BTC demand in 2026. That thesis hit a wall when STRC fell below $100, breaking its peg. The Strategy Variable Rate Perpetual Stretch Prf Shs Series dropped to $91 before recovering to $93. Per the analyst, the break was a turning point for $BTC, as Strategy stopped issuing new shares and effectively halted Bitcoin purchases. With demand for Strategy's paper drying up, the broader market weakened significantly — a tidy case of "who's holding the bag now."

Moreover, Strategy was forced to sell 32 $BTC worth $2.5 million to cover dividends. The selling didn't help, and Strategy shares tumbled alongside.

Strategy defenders praise Bitcoin's robustness

Saylor and Strategy have been on the receiving end recently, but Saylor himself remains unfazed. He and other market players have continued to defend the current market dynamics. Saylor and Lyn Alden argued that Bitcoin's robustness means it cannot be captured by a single market player. On X, Saylor stated that "Fundamentalalist seek to protect Bitcoin from corruption, capture, or compromise." In essence, Saylor posited that Bitcoin remains an open network for all market players — capitalists, minimalists, technologists, and fundamentalists alike.

On the other hand, Lyn Alden, author of Broken Money, criticized market bears who think Saylor's 4% is enough to destroy the network. She noted that purchasing 4% of $BTC does not imply everything else fails, and that anyone using this to claim Bitcoin is overvalued is reaching. In her assessment, she warned that if 4% could destroy Bitcoin, it would deserve to fail. Alden noted, "I happen to think it's more robust than that."

What does it mean for the market?

Based on recent events, market participants are clearly watching Strategy and Saylor's next moves. At the same time, it confirms that Strategy holds significant influence over Bitcoin price action. Therefore, the next market move largely depends on what Strategy does. If they end up selling more Bitcoin — especially now that STRC is trading below $100 — $BTC will likely suffer further. However, if Strategy resumes buying, the market feud will cool, boosting $BTC's chances of recovery.

Final Summary

Michael Saylor's $100-per-Bitcoin strategy collapsed after STRC fell below $100, prompting Strategy to sell $BTC. Bitcoin and Strategy defenders argue $BTC is robust and Saylor's impact on the market remains minimal — though price action seems to disagree with that last part for now.