MicroStrategy [MSTR] stock has crashed 57% to $230, hitting a four-month low – closely following Bitcoin's [BTC] 22% plunge.

Given MSTR's massive Bitcoin holdings, the correlation is no surprise. With Trump ruling out BTC in the U.S. strategic reserve, concerns are growing about its impact on institutional adoption.

Strategy (NASDAQ:MSTR) stock has crashed 57% to $230, hitting a four-month low – closely following Bitcoin’s (BTC) 22% plunge. Given MSTR’s massive Bitcoin holdings, the correlation is striking.

The correlation is no surprise, considering Strategy’s massive Bitcoin stash. As the institution pivots toward crypto, it’s interesting to see how the lack of institutional capital impacts the broader market.

With Trump ruling out BTC in the U.S. strategic reserve and risk-on assets reacting negatively to the recent crypto summit, concerns are growing.

Could this shake confidence in Bitcoin and altcoins?

The recent downturn saw Bitcoin shed $100 billion in market value in a single day, while the S&P 500 wiped out $1.4 trillion.

But it was Strategy that saw an even steeper decline.

The company, which had been accumulating BTC since 2015 and now holds 499,096 coins, had positioned itself for Bitcoin’s long-term appreciation, especially amid speculation that the U.S. government might add BTC to its strategic reserves.

However, Trump’s statement dealt a heavy blow to MSTR’s strategy, triggering a wave of sell-offs in the institution’s stock.

But the fallout didn’t stop there.

Bitcoin Exchange-Traded Funds (ETFs) witnessed over $500 million in outflows on the same day, further reinforcing bearish sentiment.

Since February, specifically, institutional outflows have been a dominant theme, with billions leaving exchanges – a trend that shows no signs of reversal yet.

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