#我的Gate交易时刻 🦅The Federal Reserve's pressure! Bitcoin reclaims $65k but then plunges again, Strategy's increased holdings fail to save the scene

After Bitcoin surged and then pulled back yesterday, it returned to the recent volatile range, currently trading around $63.6k, affected by the hawkish Federal Reserve and potential US-Iran agreements.
Yesterday, the dollar strengthened along with rising yields, putting pressure on Bitcoin, with risk assets falling in tandem. Bitcoin briefly broke above $65,500 during the US trading session in early trading, then retreated to around $64,700, still lacking clear catalysts. Strategy (MSTR) briefly fell over 7% during the day. The stock previously hit an intraday high of $120, then dropped to $111. Earlier, the company announced it had added 520 Bitcoin and increased its cash reserves by $300 million, bringing its total USD holdings to $1.4 billion.
In other assets, gold fell over 1%, breaking below $4,200; Brent crude oil declined 2.5%, falling below $74 per barrel; the Nasdaq 100 and S&P 500 also edged into negative territory.
Strategy increases cash reserves
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 was a strategic sale at the end of May this year, breaking CEO Michael Saylor’s long-standing “never sell” philosophy; the second was in 2022, mainly for tax considerations.
Can Strategy continue to pay perpetual dividends?
However, the market’s focus has now shifted to another challenge: MicroStrategy’s preferred stock Stretch (STRC). Last week, the market continued to watch the sharp decline in STRC’s price, which put pressure on 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
So far, the market does not 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 remains in a range-bound oscillation
🦅The Federal Reserve's restrictions have limited Bitcoin’s upside potential. From the amplified hourly volatility, Bitcoin is still stuck in a range, squeezed by two forces: on one side, 🦅 the Federal Reserve, and on the other, the potential US-Iran peace agreement.
Three key levels to watch now: $54,000 is a long-term bottom, $72,000 is the breakeven point for many recent buyers, and $77,200 is the next major resistance level.
As the market increasingly prices in the Fed maintaining high interest rates for a longer period, unless signs of cooling inflation emerge, both gold and Bitcoin may continue to remain under pressure.