STRC Depeg and the Loss of Financing Capacity
Odaily reported that crypto analyst Murphy said the current STRC depeg can be treated as an extreme stress test for the market. In his view, the depeg has temporarily caused STRC to lose its financing capacity. The amount of time required for STRC to return to its peg will directly affect how strongly the market worries about whether Strategy sells Bitcoin again.
Murphy’s comments focus on the chain reaction between STRC’s peg status and Strategy’s Bitcoin holdings. The market is paying close attention to the STRC depeg not only because the asset has moved away from its peg, but also because the episode reflects investors’ sensitivity toward any sign that Strategy may continue selling BTC. The repeg process has therefore become closely linked with discussions around financing capacity and potential sell-side pressure from Strategy.
Long-Term Holder Behavior After the 32 BTC Sale
Murphy noted that Strategy previously sold only 32 BTC. Although the actual selling pressure from that transaction was limited, he said it still broke through the psychological defenses of some long-term holders. After the related announcement was released, the net holdings of long-term holders, or LTH, began to decline.
According to Murphy, the pace of distribution at one point exceeded both the pace of accumulation by long-term holders and the pace at which short-term holders were converting into long-term holders. That shift disrupted the market’s previous supply-demand balance and pushed BTC quickly from $74,000 to around $60,000.
Murphy said the current focus on the STRC depeg essentially reflects the market’s sensitivity to whether Strategy will keep selling Bitcoin. If another round of large-scale selling by long-term holders is triggered, current market demand would be difficult to absorb effectively, based on his assessment.
At the same time, Murphy also said the liquidity created by cascading forced selling provides large pools of capital with an opportunity to collect positions. When negative news continues to be released while prices become increasingly difficult to push lower, he said it often indicates that the market’s extreme stress test is nearing its end. His comments center on STRC’s repeg, concerns over Strategy selling BTC, changes in LTH net holdings, and the balance between Bitcoin supply and demand.