Murphy Says STRC Depegging Acts as Stress Test, Raising Concerns Over Strategy Bitcoin Sales

Crypto analyst Murphy said the current STRC depegging can be viewed as an extreme market stress test that has temporarily reduced STRC’s ability to obtain financing. According to Odaily, Murphy said the time needed for STRC to re-peg will directly affect how strongly the market worries that Strategy may sell Bitcoin again.

Murphy said Strategy previously sold only 32 BTC, and while the actual selling pressure was limited, it still broke the psychological threshold for some long-term holders. After the related announcement, net positions held by long-term holders (LTH) began to decline, and distribution at one point exceeded the pace of LTH accumulation and the conversion of short-term holders, disrupting the market’s prior supply-demand balance. He said this helped push Bitcoin down quickly from $74,000 to around $60,000.

Murphy said the market is closely watching the STRC depegging event, which he described as reflecting investor sensitivity to whether Strategy will continue selling. He added that if it triggers another wave of large-scale selling by long-term holders, current market demand may struggle to absorb it.

At the same time, Murphy said liquidity created by cascading sell-offs can provide large investors with opportunities to accumulate positions. He said that when negative news continues to emerge but prices become increasingly difficult to push lower, it often indicates the extreme stress test is nearing its end.