Bitcoin falls below the Strategy holding price, why do Michael Saylor and others still stick to their holding strategy?

On February 1, the Bitcoin market experienced intense volatility, with prices briefly dropping below $75,000, more than a 30% decline from its all-time high.

Data from strategy analysis firm CryptoQuant shows that Bitcoin’s realized market value has essentially stabilized, indicating that new capital inflows have halted. However, what is noteworthy is that despite the significant market correction, companies like Strategy have not changed their Bitcoin strategies.

01 Market Volatility

The current crypto market is undergoing severe price fluctuations. On February 2, 2026, Bitcoin’s price briefly fell below $75,000, ultimately closing at $76,524.86. This decline marked a new low since April 2025.

Within just 24 hours, the total market capitalization of cryptocurrencies evaporated by approximately $111 billion, with about $16 billion in leveraged positions forcibly liquidated, mainly in Bitcoin and Ethereum.

Compared to the October 2025 all-time high of $126,100, Bitcoin has fallen about 38%. Not only Bitcoin, but major tokens like Ethereum and Solana also experienced significant declines, indicating a broad market weakness.

02 Company Strategies

Amid widespread market concerns, Strategy, as the largest publicly listed Bitcoin holder, currently holds 712,647 BTC, with unrealized losses exceeding $900 million.

Surprisingly, despite these substantial paper losses, Strategy’s strategy has not changed. Instead, the company even announced a 25 basis point increase in the February dividend rate of its perpetual preferred stock STRC to 11.25%.

Michael Saylor stated that this move will enable the company to raise more funds through stock issuance to increase its Bitcoin holdings. This clearly indicates that even with accounting losses, the company remains confident in Bitcoin’s long-term prospects.

03 Challenges to Bitcoin’s “Digital Gold” Narrative

Bitcoin has long been promoted as “digital gold,” but recent market performance challenges this narrative. While gold prices soared to a record high of $5,600 per ounce, Bitcoin prices continued to decline.

Data shows that the 30-day rolling correlation between Bitcoin and the Nasdaq 100 index reached 0.80 in January 2026, the highest in nearly four years.

This suggests that Bitcoin’s performance is increasingly resembling high-risk tech stocks rather than traditional safe-haven assets.

During recent geopolitical tensions, Bitcoin fell by 6.6%, while gold rose by 8.6%, further highlighting Bitcoin’s shortcomings as a safe-haven asset.

04 Changes in Market Structure

The approval of the US spot Bitcoin ETF in January 2024 was seen by many as a milestone for cryptocurrency legalization, but it may have inadvertently altered Bitcoin’s role in the market.

Research indicates that the ETF approval changed Bitcoin’s correlation pattern with the S&P 500, making its performance more akin to traditional risk assets rather than an independent hedge.

The capital flow within the ETF framework has shifted funds that might have gone into gold toward Bitcoin, but more for speculative purposes rather than hedging needs.

Recently, US spot Bitcoin ETFs have experienced four consecutive days of outflows totaling $1.62 billion, indicating that institutional investors are reducing their risk exposure to the crypto market.

05 Liquidity Challenges

Another key issue in the Bitcoin market is the ongoing decline in liquidity. Early Bitcoin holders, who accumulated large unrealized gains through active buying of spot Bitcoin ETFs and Strategy over months, are now beginning to realize profits.

On-chain analysis shows that “old coins” continue to flow to exchanges, indicating persistent selling pressure. This “seller suspension” phenomenon contrasts sharply with the gold market, where central banks’ continuous purchases provide strong structural support for gold prices.

Market data shows that the spot trading volume of Bitcoin and altcoins has fallen to the lowest levels since November 2023, creating an environment of increasingly thin liquidity.

Analyst Willy Woo describes the current market as a “ghost town,” noting that Bitcoin’s mempool and transaction fees have dropped to historic lows, reflecting a sharp decline in on-chain activity.

06 Institutional Responses

In response to market challenges, major Bitcoin holding companies are taking a series of measures:

Raising dividends to raise funds: Strategy increased the dividend rate of its perpetual preferred stock STRC, providing more capital to increase Bitcoin holdings.

Maintaining a long-term holding strategy: Despite unrealized losses, companies like Strategy show no signs of selling their Bitcoin. Chaincode Labs’ data indicates they continue to accumulate Bitcoin.

Exchanges are also acting: Bitget CEO Gracy Chen stated that the exchange has been steadily increasing its Bitcoin holdings from January 2025 to January 2026, with the platform’s BTC holdings “almost only increasing.” As a leading cryptocurrency exchange, Gate also provides a secure and reliable environment for Bitcoin trading.

07 How Investors Can Respond to the Current Situation

For ordinary investors, a cautious but not overly pessimistic approach is advisable in the current market environment:

Focus on long-term trends: CryptoQuant CEO Zhu Ji-yong pointed out that unless major holders like Strategy start selling Bitcoin, a 70% deep cyclical decline is unlikely. The current dip is more likely to be resolved through a prolonged sideways consolidation rather than a quick rebound.

Maintain investment discipline: In the current market, maintaining discipline is especially important. Gate recommends investors consider dollar-cost averaging to mitigate market volatility.

Pay attention to risk management: Leverage trading is particularly risky in the current environment. About $1.6 billion in leveraged positions were forcibly liquidated in the past 24 hours, serving as a reminder for investors to exercise caution with leverage.

The bear market is more likely to develop into a broad consolidation phase. When gold and silver experience sharp corrections, Bitcoin’s response has been limited, weakening market expectations of cryptocurrencies as spillover hedges.

Market data shows Bitcoin briefly dipped below $75,000, and Strategy’s Bitcoin holdings have unrealized losses exceeding $900 million. But Saylor’s focus seems to have moved beyond current price fluctuations; he is busy increasing the dividend rate on preferred stock and planning to raise more funds to buy more Bitcoin.

In the darkest hours before dawn, Bitcoin-listed companies have chosen to stand firm.