Galaxy CEO: Strategy has evolved into a signal of overall confidence in the Bitcoin market, with $59k becoming a key defense line.

BlockBeats news, June 28, Galaxy Digital CEO Mike Novogratz said that the core reason behind Bitcoin’s recent drop is a “confidence collapse triggered by Strategy.” The problem is not only the price of Bitcoin itself, but also that concerns about Strategy’s financing model are spreading across the market. As the world’s largest publicly traded company holding Bitcoin, Strategy’s stock and preferred securities have become key metrics for traders to assess risk in the Bitcoin market. Previously, the company’s Bitcoin flywheel effect had already been under pressure; at one point, its stock trading price fell below the value of its Bitcoin holdings. This means that the “issuing shares at a premium to raise funds and then buying Bitcoin” model it has relied on for years is facing challenges. Novogratz said directly that STRC trading is weak and it should have stayed around 100 US dollars. Currently, Strategy’s annual dividend obligations have risen to about 1.2 billion US dollars, and the decline in cash reserves has shortened the dividend coverage period to only about 14 months.

Bitcoin is also under pressure on a macro level. Novogratz summarized the current market logic as “a strong US dollar means a weak Bitcoin.” Hawkish central bank signals and a strengthening US dollar are suppressing demand for risk assets. From a technical perspective, the 59,000 to 60,000 US dollars range in Bitcoin has become a key line of defense. If it breaks below, the downside could open up to 45,000 US dollars.

Novogratz also acknowledged that the current situation is complex, with a 50-50 chance of a rebound versus a deep correction. ETF outflows, weak liquidity, and cautious positioning in the options market further confirm the market’s fragile sentiment. Today, the health of Strategy’s balance sheet, the STRC price performance, and its cash position are no longer just company-level issues—they have evolved into a confidence signal for the entire Bitcoin market.