The news that Strategy sold 1,690 shares of its $BTC preferred stock to buy back preferred shares briefly pushed Bitcoin below $64,000.
As a former representative of the "buy and never sell" camp, Strategy’s move dealt a notable psychological blow — the market worry is that even the staunchest HODLers are starting to cash out, and whether institutional confidence is beginning to weaken.
From the chart perspective, the combination of the news and a softer macro mood led BTC to lose a key support level, triggering a wave of cascading liquidations and increasing short-term volatility. But there is another interpretation: Strategy sold BTC to acquire STRF preferred stock, effectively swapping coin-denominated liabilities for fiat-denominated liabilities, so the structure of its balance sheet has not actually deteriorated.
Regardless of which interpretation you prefer, weaker short-term sentiment is now a fact. The key is whether the area around 62,000 can hold — if it does, this is a fear-driven shakeout; if it doesn’t, a larger downside may open up.
In terms of action, don’t rush to buy the dip; it’s not too late to wait for a right-side signal before stepping in.
#Bitcoin #majorcoin #Strategy
As a former representative of the "buy and never sell" camp, Strategy’s move dealt a notable psychological blow — the market worry is that even the staunchest HODLers are starting to cash out, and whether institutional confidence is beginning to weaken.
From the chart perspective, the combination of the news and a softer macro mood led BTC to lose a key support level, triggering a wave of cascading liquidations and increasing short-term volatility. But there is another interpretation: Strategy sold BTC to acquire STRF preferred stock, effectively swapping coin-denominated liabilities for fiat-denominated liabilities, so the structure of its balance sheet has not actually deteriorated.
Regardless of which interpretation you prefer, weaker short-term sentiment is now a fact. The key is whether the area around 62,000 can hold — if it does, this is a fear-driven shakeout; if it doesn’t, a larger downside may open up.
In terms of action, don’t rush to buy the dip; it’s not too late to wait for a right-side signal before stepping in.
#Bitcoin #majorcoin #Strategy