Tragedy! Bitcoin drops below $74,600: BTC vault is on the brink of bankruptcy

Bitcoin drops below $74,600, breaking through MicroStrategy’s average cost level, causing extreme market panic
(Background: Analysts warn: Bitcoin bulls’ hopes are over, prepare for a dip to $50,000)
(Additional context: Bitcoin hits $75,600, rebounds to $78,000 “liquidation of $500 million,” 1011 insider whale arrives with 100,000 ETH)

Bitcoin price plummeted to $74,600, officially breaking below MicroStrategy’s average cost of $76,037. This moment not only signifies that the world’s largest corporate holder is showing paper losses but also shakes the long-trusted institutional support level. The market is still experiencing a sharp decline; investors should prepare for risk management of their positions.

Psychological barrier broken

The real concern lies in the slowdown of the financing engine. As MSTR’s stock price falls below $150, the preferred stock STRC drops below par value, forcing the company to raise its dividend yield to 11.25% to maintain fundraising. The high costs intensify the friction of the “issuing shares to buy coins” flywheel. If the stock price cannot regain a high premium, future strategies of issuing new shares to exchange for coins will stall.

Nevertheless, CEO Michael Saylor still added 2,932 BTC at an average price of $90,061 in late January. According to Bitcoin Magazine, this move reinforces long-term faith and simultaneously raises the overall holding cost. The market generally expects that the macro environment in 2026 will be difficult to loosen quickly. Whether MicroStrategy can restart the leveraged flywheel at a high premium remains a key point to watch.

In summary, MicroStrategy will not immediately lose ground due to falling prices, but if Bitcoin cannot return above $80,000, the disappearance of financing premiums and the resulting “engine failure” will limit expansion, further testing the endurance of this Bitcoin giant.

“Not everything you face can be changed, but nothing can be changed before you face it.”