The cryptocurrency market experienced a sharp decline on Monday, with Bitcoin dropping nearly 5% to around $86,000 and Ethereum falling to approximately $2,800, reflecting a broader negative sentiment affecting both crypto and stock markets. The decline was triggered by multiple factors, including China's reaffirmed strict stance against cryptocurrencies and a hack on a crypto platform. Notably, the market turmoil has raised concerns about leveraged investments, as many investors use credit to buy cryptocurrencies, risking margin calls that could force asset sales across markets. A key factor in the downturn is the behavior of Strategy, a Bitcoin treasury company that primarily buys and holds Bitcoin, financing its operations through bonds, stocks, and loans. Once highly popular, Strategy's stock has plummeted to levels comparable to its Bitcoin holdings, raising doubts about its ability to secure new funding to meet interest and dividend payments. Strategy's CEO, Phong Le, indicated in a podcast that the company is prepared to sell Bitcoin if its market value falls below its corporate valuation, potentially flooding the market with a large volume of Bitcoin sales—around 650,000 Bitcoins—adding further downward pressure. The situation is compounded by concerns over Strategy's potential exclusion from the MSCI World Index, which could lead to a loss of $2.8 billion in ETF investments, further impacting its stock price. Meanwhile, Bitcoin is approaching a critical support level at $80,000, with the next support zone around $70,000, raising fears of further declines. The overall market uncertainty is also influencing stock indices like the DAX and S&P 500, which are trading lower in pre-market sessions. Investors are advised to monitor these developments closely as the market remains volatile.