The cryptocurrency market has recently been volatile, with Bitcoin dropping sharply by 21% over the past ten days and briefly falling below the $61,000 mark, reaching a new four-month low. This decline has coincided with the timing of an action by Strategy, a company holding a large amount of Bitcoin, to announce a buyback of corporate debt, sparking market concerns about a potential “doom loop,” similar to the chain reaction seen during the Terra Luna collapse.

According to a report by TradingView, on May 15, Strategy announced its decision to repurchase some convertible debt—an instrument that can be converted into company stock under certain conditions. The move also led Strategy to pause its long-running Bitcoin accumulation strategy. Since March this year, the company has accumulated as many as 126,016 Bitcoins, with a total cost of approximately $9.31 billion, making it one of the publicly traded companies with the largest Bitcoin holdings worldwide.