#我的Gate交易时刻 🦅Pavement Federal Reserve pressure! Bitcoin returns to $65k and then plunges again, Strategy's increased holdings fail to save the scene
After spiking and pulling back yesterday, Bitcoin has returned to the recent volatile range, currently trading around $63.6k, affected by the hawkish Federal Reserve and the potential US-Iran agreement.
Yesterday, the dollar strengthened along with rising yields, putting pressure on Bitcoin, with risk assets declining in tandem. Bitcoin briefly broke above $65,500 during the US trading session early in the day, then retreated to around $64,700, with no clear catalyst for the movement. Strategy (MSTR) briefly fell over 7% intraday. The stock previously reached an intraday high of $120, then dropped to $111. Earlier, the company announced it had added 520 Bitcoin to its holdings and increased cash reserves by $300 million, bringing its total dollar holdings to $1.4 billion.
In other assets, gold fell over 1%, breaking below $4,200; Brent crude oil declined 2.5%, dropping below $74 per barrel; the Nasdaq 100 and S&P 500 also edged into negative territory.
Strategy increases cash reserves Strategy
On Monday (June 22), the company disclosed that it bought 520 Bitcoin the previous week at an average price of $67,068 per coin, totaling about $34.9 million. This transaction brought Strategy’s total Bitcoin holdings to 847,363 coins, with an average cost basis of approximately $75,651 per coin.
Strategy has only sold Bitcoin twice in history. The first strategic sale occurred in late May this year, breaking CEO Michael Saylor’s long-standing “never sell” philosophy; the second was in 2022, mainly for tax considerations.
Can Strategy sustain paying perpetual dividends?
However, the market’s focus has now shifted to another challenge: MicroStrategy’s issued preferred stock Stretch (STRC). Last week, the market continued to watch the sharp decline in STRC preferred stock price, which pressured Strategy’s stock price. This is a headache for Strategy because STRC is currently the main tool the company uses to raise funds for Bitcoin acquisitions. Last Thursday’s sell-off pushed STRC down to $82.53, pushing its effective yield to 14%.
Beware of Strategy selling more Bitcoin
But so far, the market doesn’t seem very confident. In theory, adjusting the dividend payment frequency from monthly to semi-monthly should make the product more attractive. As the next ex-dividend date (June 30) approaches, the market will watch for more buying interest to return. If buying does not recover, Strategy will be unable to raise funds by issuing new STRC shares.
Bitcoin enters range-bound consolidation
🦅Pavement Federal Reserve has limited Bitcoin’s upside. From the hourly volatility perspective, Bitcoin remains in a range, squeezed by two forces: on one side, 🦅Pavement Federal Reserve, and on the other, the potential US-Iran peace agreement.
Three key levels to watch are: $54,000 as a long-term bottom, $72,000 as the breakeven point for many recent buyers, and $77,200 as the next major resistance.
As the market increasingly prices in the possibility that the Federal Reserve will maintain high interest rates for an extended period, unless signs of cooling inflation appear, both gold and Bitcoin may continue to be under pressure.
After spiking and pulling back yesterday, Bitcoin has returned to the recent volatile range, currently trading around $63.6k, affected by the hawkish Federal Reserve and the potential US-Iran agreement.
Yesterday, the dollar strengthened along with rising yields, putting pressure on Bitcoin, with risk assets declining in tandem. Bitcoin briefly broke above $65,500 during the US trading session early in the day, then retreated to around $64,700, with no clear catalyst for the movement. Strategy (MSTR) briefly fell over 7% intraday. The stock previously reached an intraday high of $120, then dropped to $111. Earlier, the company announced it had added 520 Bitcoin to its holdings and increased cash reserves by $300 million, bringing its total dollar holdings to $1.4 billion.
In other assets, gold fell over 1%, breaking below $4,200; Brent crude oil declined 2.5%, dropping below $74 per barrel; the Nasdaq 100 and S&P 500 also edged into negative territory.
Strategy increases cash reserves Strategy
On Monday (June 22), the company disclosed that it bought 520 Bitcoin the previous week at an average price of $67,068 per coin, totaling about $34.9 million. This transaction brought Strategy’s total Bitcoin holdings to 847,363 coins, with an average cost basis of approximately $75,651 per coin.
Strategy has only sold Bitcoin twice in history. The first strategic sale occurred in late May this year, breaking CEO Michael Saylor’s long-standing “never sell” philosophy; the second was in 2022, mainly for tax considerations.
Can Strategy sustain paying perpetual dividends?
However, the market’s focus has now shifted to another challenge: MicroStrategy’s issued preferred stock Stretch (STRC). Last week, the market continued to watch the sharp decline in STRC preferred stock price, which pressured Strategy’s stock price. This is a headache for Strategy because STRC is currently the main tool the company uses to raise funds for Bitcoin acquisitions. Last Thursday’s sell-off pushed STRC down to $82.53, pushing its effective yield to 14%.
Beware of Strategy selling more Bitcoin
But so far, the market doesn’t seem very confident. In theory, adjusting the dividend payment frequency from monthly to semi-monthly should make the product more attractive. As the next ex-dividend date (June 30) approaches, the market will watch for more buying interest to return. If buying does not recover, Strategy will be unable to raise funds by issuing new STRC shares.
Bitcoin enters range-bound consolidation
🦅Pavement Federal Reserve has limited Bitcoin’s upside. From the hourly volatility perspective, Bitcoin remains in a range, squeezed by two forces: on one side, 🦅Pavement Federal Reserve, and on the other, the potential US-Iran peace agreement.
Three key levels to watch are: $54,000 as a long-term bottom, $72,000 as the breakeven point for many recent buyers, and $77,200 as the next major resistance.
As the market increasingly prices in the possibility that the Federal Reserve will maintain high interest rates for an extended period, unless signs of cooling inflation appear, both gold and Bitcoin may continue to be under pressure.
