Strategy's $100 STRC Peg Breaks, Halting Bitcoin's Top Demand Driver

Bitcoin [BTC] collapsed under extended bearish pressure, briefly touching a low of $59k for the first time since 2024. At press time, BTC traded at $62,732, down 28% YTD and 40% on yearly charts.

With BTC locked in a strong bearish trend, tensions in the community have predictably risen. Amid the finger-pointing, Bitcoin's Treasury firm, Strategy, has taken the blame. Critics have pointed at Strategy as the main cause of the prevailing market conditions. Strategy has been the top public buyer this year, issuing high-yield STRC shares to fund its purchases.

An analyst noted that Michael Saylor's $100-per-Bitcoin strategy was the biggest driver of BTC demand in 2026. However, STRC fell below $100, breaking its peg. The Strategy Variable Rate Perpetual Stretch Prf Shs Series dropped to $91 before recovering to $93. According to the analyst, this break was a turning point for BTC, as Strategy stopped issuing new shares, effectively halting Bitcoin purchases. With demand for Strategy drying up, the broader market weakened significantly.

Moreover, Strategy was forced to sell 32 BTC worth $2.5 million to pay dividends. The selling only deepened the weakness, with Strategy shares plummeting alongside the broader market.

Although Saylor and Strategy were recently on the receiving end, Saylor remained optimistic. 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 held hostage by a single market player. "Fundamentalists" 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 that everything fails, implying that BTC is overvalued. In her assessment, she warned that if 4% can destroy Bitcoin, it deserves to fail. "I happen to think it's more robust than that."

Based on recent events, market players are clearly watching Strategy and Saylor's decisions closely. At the same time, this means Strategy has significant influence on Bitcoin's price action. The next market move, therefore, depends largely on what Strategy does next. If they end up selling more Bitcoin — especially now that STRC trades below $100 — BTC will likely suffer further. However, if Strategy starts buying again, the market feud may cool down, improving BTC's chances of recovery.