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Theory: Bitcoin Crash to $40K Could Spark MicroStrategy Rally, Sources Suggest

Traders theorize Bitcoin crash to $40K followed by MicroStrategy's hypothetical $8B OTC sale and debt paydown could spark bullish reversal.

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A market theory circulating on X (formerly Twitter) proposes that Bitcoin could experience a sharp pullback to $40,000 amid panic selling, followed by a dramatic reversal if MicroStrategy founder Michael Saylor were to announce a substantial off-market bitcoin sale, according to crypto analysts tracking the narrative.

Under this scenario, MicroStrategy would liquidate $8 billion worth of bitcoin through over-the-counter channels to eliminate corporate debt entirely, while maintaining $50 billion in bitcoin reserves on its balance sheet. The theory suggests such an announcement would restore market confidence and trigger a bullish reversal across both Bitcoin and MicroStrategy stock.

The speculation reflects broader interest in how major corporate bitcoin holders like MicroStrategy could influence market cycles through strategic asset management. MicroStrategy has previously sold portions of its bitcoin holdings, and any large-scale liquidation announcement would likely move markets given the company's status as one of the largest institutional bitcoin owners outside of crypto-native entities.

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