Galaxy CEO: Strategy has evolved into a signal of overall confidence in the Bitcoin market, with $59,000 becoming a key line of defense.

Mars Finance News, June 28 — Galaxy Digital CEO Mike Novogratz said that the core reason for Bitcoin’s recent decline is a “confidence collapse triggered by Strategy.” The issue is not only with Bitcoin’s price itself; the market’s concerns about Strategy’s financing model are spreading as well. As the world’s largest publicly listed corporate holder of Bitcoin, Strategy’s stock and preferred securities have become key indicators for traders to gauge risk in the Bitcoin market. Previously, the company’s Bitcoin flywheel effect had already come under pressure: at one point, its stock trading price fell below the value of its Bitcoin holdings, meaning that the long-standing “issue shares at a premium to raise funds and then buy more Bitcoin” model it has relied on for years is now being challenged. Novogratz was blunt that STRC trading is weak and should be kept around $100. Meanwhile, Strategy’s annual dividend obligations have risen to about $1.2 billion, and declining cash reserves have shortened the dividend coverage period to only about 14 months.

Bitcoin is also facing pressure on the macro level. Novogratz summed up the current market logic as “a strong U.S. dollar means a weak Bitcoin,” with hawkish central bank signals and a stronger dollar suppressing demand for risk assets. From a technical standpoint, the $59,000 to $60,000 range for Bitcoin has become a critical line of defense; if it breaks lower, downside room could open up to $45,000. Novogratz also admitted that the current situation is complex, with a 50/50 chance between a rebound and a deep correction. ETF fund outflows, weak liquidity, and cautious positioning in the options market further reinforce the market’s fragile sentiment. Today, the health of Strategy’s balance sheet, STRC’s price performance, and its cash position are no longer just company-level issues—they have evolved into a confidence signal for the broader Bitcoin market as a whole.