Bitcoin down 20% since May as Strategy fallout spooks investors

Bitcoin is tanking. Despite a modest rebound in the past day, the price of the world’s largest cryptocurrency is down about 5% over the past week and 20% since May, according to data from CoinGecko. Ethereum, the world’s second-largest cryptocurrency, has seen comparable declines, and the total crypto market capitalization has dropped 36% in a year to now just over $2 trillion. 

The market rout comes amid declining confidence in the Bitcoin-amassing giant Strategy, which currently holds almost $51 billion in the cryptocurrency, or roughly 4% of the world’s total supply, according to the company’s own data.

The company’s stock almost halved over the past month to now around $85. And STRC, a form of Strategy stock that executive chairman Michael Saylor has repeatedly touted, has broken its $100 peg. Now, the asset, which is designed to pay holders a rich monthly dividend, is trading at slightly above $75.

“People are worried that [STRC’s downturn] is going to force Strategy to sell Bitcoin to raise cash in the market, and that’s creating a negative psychological environment,” Matt Hougan, chief investment officer at the crypto asset manager Bitwise, told Fortune.