The drop adds pressure on Strategy because its valuation moves faster than Bitcoin. The company's stock often rises quicker during rallies and sinks deeper during corrections. Yet the key issue focuses on whether a deeper Bitcoin fall triggers index removal for Strategy.

Index Removal Depends on Structure, Not Bitcoin Price

Strategy does not face automatic removal from the Nasdaq 100 if Bitcoin hits $75K. Nasdaq rules rely on market-cap ranks and . They do not use Bitcoin price triggers. This keeps Strategy above common removal ranges of $20-40 billion.

The company still holds over 649,870 Bitcoin. A move to $75K still values Bitcoin above $49 billion. The stock may fall faster than Bitcoin because it trades like a leveraged Bitcoin vehicle. Yet its size remains large enough to stay within the index.

Even so, traders debate whether falling below Strategy's average Bitcoin cost signals deeper risk. The company bought its Bitcoin at an average of $74,433. A 15% Bitcoin drop from current levels sends its entire position into unrealized losses. Many traders watch the $75K area because it aligns with that break-even point. Yet index providers do not consider those levels when making decisions.

MSCI's Review Creates the Real Pressure Point

The most significant threat comes from an MSCI review scheduled for January 15, 2026. MSCI may remove companies whose primary business involves holding Bitcoin. This review shapes a structural question:

Does remain a technology company or shift into a Bitcoin holding vehicle? JPMorgan analysts note that removal could trigger $2.8 billion in forced selling. If other index providers follow the same approach, outflows could reach $11 billion.

This review matters because many funds track the MSCI USA Index. The benchmark covers large-cap and mid-cap companies representing most of the U.S. market. Strategy's removal raises liquidity concerns because index funds hold a major share of its float. Removal forces mechanical selling and reduces trading stability. It also weakens access to institutional capital during market stress.

Strategy's stock has already fallen sharply. It now trades 40% lower over the past month and 68% below its record high. The decline ties directly to Bitcoin's retreat and rising concern about the MSCI decision. Although the company remains the largest corporate holder of Bitcoin, its classification drives the next phase.

Market Structure Defines the Next Phase

Strategy transformed from a software company into a Bitcoin-focused entity over the past five years. The pivot reshaped its valuation and risk profile. It also linked its performance to Bitcoin's long-term direction. Traders now evaluate its business model rather than only its balance-sheet exposure.

Index providers look at classification categories during reviews. They examine whether business activities fit specific sectors. Strategy's shift into a Bitcoin-driven model pushes regulators to reconsider its placement. The MSCI decision may reshape the company's institutional demand more than a drop toward $75K.

Conclusion

Strategy faces growing structural pressure as Bitcoin retreats and the MSCI review nears. The company's index position depends on its market cap and business classification, not Bitcoin's price. Investors may need to monitor the January 2026 review closely because it could reshape institutional flows and future liquidity.