The cryptocurrency market experienced a significant downturn on Monday, with Bitcoin falling nearly 5% to around $86,000 and Ethereum dropping close to 6% to approximately $2,800. This decline followed a period of stabilization above $90,000 for Bitcoin and $3,000 for Ethereum. The negative sentiment has also affected traditional stock markets, with the DAX and S&P 500 opening lower. A key concern is that many investors purchase cryptocurrencies using leverage, which can lead to margin calls and forced sales across other asset classes during sharp declines. Several factors contributed to the market drop, including China's reaffirmed strict stance against cryptocurrencies and a recent hacking incident on a crypto platform. Additionally, a notable influence was the behavior of Strategy, a Bitcoin treasury company that holds nearly 650,000 Bitcoins. Strategy's CEO, Phong Le, indicated in a podcast that the firm is prepared to sell Bitcoins if its market value falls below its book value, which could flood the market with a large supply and further depress prices. This statement raises concerns about potential market impact and psychological effects, especially since other treasury companies might follow suit. Further complicating the situation, MSCI has expressed doubts about Strategy's eligibility to remain in the MSCI World Index, which could lead to a $2.8 billion decline in its valuation if it is excluded. The Bitcoin price is approaching critical support levels, with the $80,000 mark in sight, and a fall below that could see the next support at around $70,000. Overall, external pressures, strategic corporate actions, and broader market sentiment continue to drive volatility in the crypto and stock markets.