Strategy (MSTR) stock continues to fall to open the year, riding a streak of several months trading in the red. The slump comes as Bitcoin (BTC) has also fallen below the $73 mark, a 52-week low. As a result, MSTR is also trading near the bottom of its 52-week range and below its 200-day simple moving average.

Strategy CEO Michael Saylor maintains a bullish outlook despite significant unrealized losses and criticism regarding the firm’s ability to support Bitcoin prices. However, investors aren’t convinced, and have begun revising their forecasts for the stock to reflect bearishness. Now trading below $125, some Wall Street forecasts now see MSTR falling further to as low as $100. On the other hand, some bulls remain. Maxim Group sets the highest target at $500, while Barclays and Canaccord Genuity target $475 and $474 respectively.

Strategy Continues BTC Buying Spree, But is Hope for MSTR Dwindling?

Additionally, Strategy (MSTR) continues to buy in on Bitcoin’s low period, recently accumulating another $264 million in BTC. The Michael Saylor-established firm now holds 712,647 BTC valued at approximately $63 billion. With Bitcoin’s slow start to 2026, Strategy has taken advantage of the lower prices, anticipating that the leading digital asset will inevitably spark back above $100,000.

Furthermore, the GraniteShares 2x Short MSTR Daily ETF has surged 275% over the past year, reflecting bearish sentiment against MicroStrategy amid declining Bitcoin values. The ETF is an actively managed fund designed to deliver -200% of the Strategy’s daily performance. In simple terms, if MSTR falls 2% in a day, the ETF targets a 4% gain that same day (before fees/decay). The fund debuted in January 2025 and is seen as a high-risk short-term tactical tool for bears betting against MSTR. MSDD’s price hit a record high of $114 on Tuesday, up 13.5% on the year, extending the past year’s 275% surge, according to TradingView.

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In conclusion, as fears around Bitcoin and crypto continue to mount in 2026, crypto-based stocks like Strategy MSTR and Coinbase (COIN) continue to drop. This is a complete 180 from previous projections for the year, and the trend doesn’t appear to have a near-term conclusion forecasted. Therefore, many analysts are changing their tune on both BTC and MSTR, suggesting to get out now before both assets plummet further.