Strategy Stock Slumps Amidst Hawkish Fed Expectations and Crypto Price Weakness

Strategy stock is experiencing a downturn today, with shares plummeting by 2.7% in morning trading to $129.32 after hitting a session low of $123.90.

The decline can be attributed to a combination of factors, including weakness in Bitcoin's price, which fell below $78,000 and has historically been a challenging month for the cryptocurrency.

This development puts pressure on Strategy as one of the most prominent leveraged proxies for BTC in public markets.

The primary macro headwind is a sharp repricing of Federal Reserve policy expectations, with markets now pricing in approximately a 66-67% probability of a 25-basis-point rate hike at the September 15-16 FOMC meeting.

This significant shift has tightened financial conditions and pressured risk assets broadly.