MicroStrategy renaming to Strategy didn't change its fate; high-leverage holdings became the trigger for systemic risk amid market headwinds. Novogratz pointed out not just a single blowout, but a microcosm of the entire crypto market's structural fragility—when institutional credit is deeply tied to coin prices, no one can stay immune in a deleveraging cycle.

Galaxy Digital founder and CEO Mike Novogratz stated in a podcast that the recent crypto market decline is due to multiple factors, with deteriorating confidence in the capital structure of Strategy (formerly MicroStrategy) being the main cause. "This is a confidence collapse triggered by MicroStrategy, and it is turning into a crisis of confidence for Bitcoin." He also noted that the market is under further pressure from the overall unpopularity of the crypto market, investors' growing suspicion of market structure, and macroeconomic factors such as the Fed's hawkish stance and a strengthening US dollar.