Bitcoin drops 21 percent as Strategy debt buyback halts buying spree

The aggressive buying streak just hit a brick wall. Bitcoin's price took a 21% dive after Strategy signaled a shift toward debt buybacks, effectively drying up the liquidity that pushed markets higher. Investors are spooked because the firm is no longer acting as the market's backstop, leaving a vacuum where massive buy orders used to sit. The sudden pivot has some analysts dusting off their Terra Luna playbooks, fearing a forced deleveraging cycle if prices keep sliding. While the company isn't dumping its stash yet, the pause in accumulation removes the primary driver of recent momentum. It's a stark reminder of how much the current rally relies on a handful of institutional balance sheets. If the firm's liquidity stays tight, the floor for this correction might be further down than anyone expected. Traders are now watching to see if this is a temporary pause or the start of a deep structural retreat.