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Bitcoin price has shed 21% of its value from its record high of around $108,000 recorded in January 2025. Despite the uncertainty, Strategy (formerly MicroStrategy), which is currently the fourth-largest Bitcoin holder, has continued to accumulate. However, as the price inches lower, Strategy’s $44 billion BTC portfolio is at risk of dropping below the average buying price of $67,556. If this happens, what would happen to the company’s 531,644 BTC? Let’s explore. 

Why Bitcoin Price Drop Below $67K Threatens Michael Saylor’s Strategy 

Bitcoin price today trades at $85,550. Meanwhile, Strategy’s average buying price for its $44 billion Bitcoin portfolio is $67,556 per data from Strategy Tracker. This means that at the current BTC price, Strategy is 26% above water and sitting on $9 billion in unrealized profits. 

However, the most recent Bitcoin purchase by Strategy drew criticism from Bitcoin critic Peter Schiff who observed that each new purchase takes the company closer to making losses. He opined, 

“At the moment you still have about a 25% paper gain. By soon your average cost will be above the market price, meaning your entire Bitcoin position will be held at a loss.” 

Schiff’s comments come after popular market analyst Whale Panda criticized Strategy’s plan to buy Bitcoin using debt. The analyst stated that Saylor would likely trigger the next Bitcoin bear market if he fails to get the cash needed to pay off the debt offerings used to fund MicroStrategy’s BTC accumulation. 

Moreover, last week, an SEC filing by Strategy emerged stating that if BTC price continues to decline, Strategy might sell Bitcoin at a loss to meet its financial obligations. This means that if Bitcoin falls below $67,000 and MicroStrategy is required to pay off debt, it will have to start liquidating BTC and end Saylor’s HODL strategy. 

The possibility of MicroStrategy going underwater explains why $67,000 matters to Saylor’s Bitcoin plan and Strategy’s business model. 

What Happens to Strategy’s $44B BTC if Price Drops Below $67,000? 

The impact that the drop in Bitcoin price below $67,000 would have on Strategy’s $44 billion BTC portfolio depends on whether such a dip is temporary or sustained. If Bitcoin briefly retests $67K but bounces back above Strategy’s average buying price, the company may not face a liquidation risk. However, this dip may create market FUD.

On the other hand, if Bitcoin price drops to $67,000 and sustains the drop to retest lower levels, Strategy will face liquidation and credit risk. In its recent SEC filing, the company stated, 

“These risks could materialize at times when Bitcoin is trading below its carrying value on our most recent balance sheet or our cost basis.” 

The resulting selloff will trigger market-wide fear and panic, causing retail traders to also dump their holdings. This may also create a black swan effect across the crypto market. 

These scenarios highlight why Bitcoin needs to hold above $67,000 to ensure MicroStrategy’s $44 billion Bitcoin portfolio does not suffer losses. 

Bitcoin Technical Analysis 

On-chain and technical data show a bullish Bitcoin price prediction, which may prevent a dip to $67,000. Analyst Miles Deutscher observed that BTC has broken out of a descending trendline for the first time since it fell from its ATH in January. 

This breakout suggests that the downtrend is weakening. If Bitcoin sustains this bullish breakout, it could result in additional gains. 

At the same time, IntoTheBlock data shows that on April 14, more than $465M BTC was withdrawn from exchanges, signaling accumulation. If the technical and on-chain data remains strong, it may prevent Bitcoin from falling below Strategy’s average buying price of $67,000, avoiding the liquidation risk.

The post Here’s What Would Happen to Strategy’s $44B BTC if Bitcoin Price Crashes Below $67K appeared first on CoinGape.

Bitcoin price has made a bold uptrend this week as it reclaims $90,000 for the first time in nearly two months. This rally has been attributed to a wide range of factors, including rising inflows to spot BTC ETFs, but one analyst has said that this pump might not last as it is simply driven by leverage. Other analysts have also attributed the gains to macro factors like the declining value of the US dollar.

Why This Bitcoin Price Rally May Be Fake 

Bitcoin price is currently approaching its highest level in two months despite growing skepticism among some analysts that this rally might reach exhaustion. Per analyst Maartunn on X, this rally was a “leverage-driven Easter pump” after Bitcoin recently added more than $2 billion in open interest within 24 hours. 

The rising open interest is also seen on Coinglass data after this metric hit $60 billion, which is the highest level in two months. Another analyst known as TXMC observed that the rapid surge in OI indicates that the ongoing BTC price rally might fade. He opined, 

“If Bitcoin ever breaks away into a bona fide decoupling from other risk assets, it won’t be fueled by over $1.5B worth of leveraged futures longs opening in a 24-hour period.” 

Besides the rising BTC’s open interest, TXMC added that this rally is also stemming from the weakening value of the US dollar. The US dollar index has plunged to its lowest level in more than three years amid the ongoing tariff war, and this is benefiting the Bitcoin price. He said,

“Bitcoin priced in dollars is about 7-8% higher than Bitcoin priced in other major currencies, relative to the Jan 20 top.”

The third reason behind the rising BTC value today is the rising inflows to spot BTC ETFs, suggesting that institutions are also buying into the ongoing rally. Data from SoSoValue shows that on April 21, inflows to these products reached $381M, marking the highest level since late January. 

Will BTC Price Crash to $80,000? 

Despite the ongoing concerns about a possible correction in Bitcoin price after the recent rally, the king coin might avoid a crash to $80,000 due to bullish technical indicators and macroeconomic conditions. 

Analyst MerlijnTrader on X shared a bullish Bitcoin price prediction on X after the coin formed a classic double bottom pattern, which often precedes significant upswings. He noted that BTC might drop to test support at the neckline of $86,900 in the near term before resuming the uptrend and possibly flip $100,000.

At the same time, trader DaanCrypto noted that Bitcoin can extend the rally if it makes a decisive daily close above the psychological price level of $90,000. However, if it fails to flip the 200-day MA and the trend reverses to cause a downtrend below the support at $85,000, it could crash to $80,000.

Meanwhile, BitMEX co-founder Arthur Hayes noted that as the US dollar weakens, the US bond market will be in a crisis. This will also attract capital inflow to BTC and support the uptrend as investors choose to abandon the greenback for assets such as crypto and gold.

Therefore, amid these factors, it is likely that the Bitcoin price might avoid a crash to $80,000 in the near term. However, if it faces rejection at $90,000, it might drop to test the support level of $85,000 and consolidate within this range if the selling pressure eases. 

The post Why This Bitcoin Price Rally Might Be Fake – Is Crash to $80K Coming Soon? appeared first on CoinGape.