Strategy Corporation confronts mounting financial pressure as Bitcoin’s recent decline threatens the sustainability of its debt-funded acquisition strategy. The software company turned crypto treasury vehicle must navigate $120 million in preferred stock dividends due by year’s end while holding just $54 million in reported Q3 cash reserves. The timing challenges the Strategy’s aggressive capital raising model. The firm has relied on selling equity and convertible debt to purchase Bitcoin during price rallies. This approach worked during Bitcoin’s expansion phases, but now faces scrutiny as cryptocurrency markets contract. Dividend Obligations Strain Cash Position Strategy’s immediate challenge centres on servicing preferred share dividends without disrupting its core strategy. The company may need to tap proceeds from its Euro-denominated STRE preferred shares to meet obligations. This represents a shift from using all raised capital for Bitcoin acquisitions. The preferred share structure now appears less sustainable than during Bitcoin’s bull run. The strategy could delay some dividend payments to preserve liquidity. Another option involves issuing STRC preferred shares with higher promised yields, though this would increase future financial burdens. Beyond immediate dividend concerns, Strategy faces a potentially larger threat from index rebalancing. The MSCI review scheduled for mid-January could trigger significant selling pressure. Passive funds currently hold over $9 billion worth of Strategy shares. Index removal could force nearly $2. 8 billion in immediate sales, with additional pressure continuing for months. Strategy maintains control of 649, 870 Bitcoin, with most holdings identifiable through blockchain wallet addresses. The treasury faces no immediate risk of liquidation. The company will not carry any Bitcoin-backed loans in 2025, thereby eliminating forced selling scenarios if prices decline further. Debt Maturity Timeline Creates Long-Term Uncertainty Strategy holds approximately $8 billion in convertible debt with maturity dates spanning 2028 to 2032. Most convertible notes already trade out of the money at current stock prices. The company generates minimal free cash flow from its legacy software business, making it dependent on access to capital markets. Annual dividend obligations total roughly $700 million. Strategy must service this debt load while waiting for potential Bitcoin price recovery. The business model requires either sustained access to capital markets or significant appreciation in cryptocurrency before major debt comes due. The strategy amplifies Bitcoin returns during upward price movements but magnifies losses during downturns. Strategy stock recovered modestly to $172. 19 after touching $166, tracking broader cryptocurrency market sentiment. At the time of writing, Bitcoin is trading at $86, 941, representing a 0. 61% increase over the past 24 hours. Bitcoin price chart, Source: CoinMarketCap.
https://bitcoinethereumnews.com/tech/why-strategys-8b-debt-problem-is-worse-than-it-looks/
Tag Archives: bitcoin
Early Bitcoin Adopter Says You Could Retire Your Bloodline with XRP
Pumpius, who entered the Bitcoin market over a decade ago, now believes investors could retire their bloodlines with XRP. The crypto market offers investors the chance to realize significant returns within relatively short periods, unlike the traditional stock market, where market participants typically hold their positions for years before realizing substantial gains. This divergence is due to the greater volatility observed with cryptocurrencies, which could push an asset up by 300% within weeks. While Bitcoin (BTC), the original cryptocurrency, set the stage in 2009, market pundits have now turned their attention to altcoins like XRP, which they believe could deliver the gains most investors anticipate. Advertisement “XRP Could Retire Your Bloodline” In one of his commentaries, Pumpius, who began investing in Bitcoin four years after its launch, suggested that XRP may be the next best thing for investors. Notably, XRP made its debut in mid-2012, three years after Bitcoin emerged. With XRP now over a decade old, some investors believe they have missed out on the profit they could have made if they invested earlier. For context, with XRP currently trading for $2. 18, the altcoin has gained 32, 608% from its earliest trading price of $0. 00587 in August 2013. As a result, an investor who committed $1,000 in 2013 would today be sitting on over $327,000. However, Pumpius believes any investor who enters the XRP market at the current level is still early. This aligns with a commentary from XRP community pundit BankXRP, who suggested last month that XRP investors were still early. Interestingly, Pumpius believes market participants who enter the market now are not only early, but they have an opportunity to record massive gains that could help them retire their families. “You’re not just early You’re about to retire your entire bloodline,” the market pundit suggested in his disclosure. “What’s Happening Right Now with XRP” Pumpius argued that market participants are on the verge of building generational wealth, advising that they do not relent. He implied that only investors who “understand what’s happening right now with XRP” would realize why he has made the bold declaration. For instance, while Ripple has continued to make acquisitions and seal partnerships in an effort to cement its place in traditional finance, CEO Brad Garlinghouse recently revealed that XRP sits at the center of all these moves. This essentially goes against the narrative that Ripple is abandoning XRP. Meanwhile, besides Ripple’s moves, institutional interest in XRP has continued to grow. Most recently, Canary Capital launched the first spot XRP ETF in the U. S., and the product has witnessed over $306 million worth of inflows over six days. Bitwise also launched its XRP ETF on Nov. 20, commanding $116 million in inflows over two days. Additionally, Franklin Templeton, Grayscale, and other issuers plan to launch their respective products in the coming weeks. Market commentators believe the capital inflows from these ETF products could lead to massive price surges for XRP. Pumpius’ optimism hinges on these factors. While most analysts have predicted a possible XRP rally to prices ranging from $10 to $13, Pumpius already has his eyes set on $100. In a July commentary, he argued that most investors will miss the XRP rally to $100. DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
https://thecryptobasic.com/2025/11/26/early-bitcoin-adopter-says-you-could-retire-your-bloodline-with-xrp/
XRP Defies Institutional Meltdown, Records Massive Gains Amid BTC & ETH Tumble ⋆ ZyCrypto
XRP price is gaining traction in the last 24 hours following a surge in traditional capital. This comes on the heels of an anticipated market recovery for altcoins as investors strategize to end Q4 2025. XRP Bags $89. 3 Million Inflows CoinRP as the leading crypto in terms of institutional appetite. The asset notched over $89 million in inflows over the last seven days, while other coins crumbled amid harsh headwinds. XRP, known for consecutive wins, declined in previous weeks, fueling a price plunge. While the market remained in the red zone, XRP bulls backed a rebound ahead of Bitcoin (BTC) and Ethereum (ETH). Investors have now splurged $351 million on XRP products in November, with an additional $2 billion this year. A notable institutional trait is limited outflows even in a bearish phase compared to other top assets. Bitcoin saw $1. 2 billion exits as investors withdrew capital from spot ETFs and other products. This round of outflows marks the fourth consecutive week underwater while XRP reversed the bearish trend. Like Bitcoin, Ethereum posted $589 million outflows, taking monthly figures over $1. 7 billion. Large traders regained confidence in XRP due to the United States spot ETF frenzy. Spot ETF investment windows for assets like XRP and Solana are touted to drive the next upward momentum backed by a friendly government stance. Another factor behind XRP traders bucking the downward trend is recent conversations around staking. Last week, Ripple engineers began consultations to onboard staking and increase its decentralized finance (DeFi) compatibility. Staking is largely accepted by the community, especially institutional investors, because of profits, incentivizing users toward network participation. Last year, a group of wealth managers tipped Ether as the crypto with the highest potential because of its staking feature. “In most blockchain networks, staking is used to align incentives among validators and token holders. It encourages long-term participation and can strengthen security by rewarding those who help maintain consensus. For holders, these models can offer a more direct way to participate in network governance, though they can also introduce new complexities around fairness and distribution.” Furthermore, expert trader Ali Martinez noted that XRP’s ascending pattern depends on maintaining the $2 support. Several firms picked up tokens after the asset moved past that level. At press time, XRP trades at $2. 20, jumping 7% in 24 hours.
https://bitcoinethereumnews.com/bitcoin/xrp-defies-institutional-meltdown-records-massive-gains-amid-btc-eth-tumble-%e2%8b%86-zycrypto/
A Big Whale in Bitcoin (BTC) Traded $1.7 Billion at These Price Levels! Or Does He Know Something?
Bitcoin (BTC) started the new week with a recovery after falling to $80,000 last week. This rally, which has risen above $88,000, is being fueled by renewed expectations for a 25 basis point Fed rate cut in December, raising investor hopes for a bullish price. Accordingly, one blockchain investor has placed a large bet that Bitcoin’s ongoing price recovery will last until the end of the year. The anonymous investor expected the $100,000 barrier to be breached again, but avoided reaching new record highs. According to Coindesk, this anonymous investor opened a $1. 76 billion BTC call option targeting the $100,000-118, 000 range. According to the data, this investor initiated a $1. 76 billion call option containing 20, 000 BTC, placing a bullish bet on continued growth to levels above $100,000 by the end of the year. The investor reportedly used a long-term call option (call condor) strategy that included four call options with the same expiration date but different expiration prices. The maturity prices were set at $100,000, $106, 000, $112, 000 and $118, 000. Deribit wrote the following in his post: “Trader opened a 100k/106k/112k/118k call condor position with December 25 maturity. The signal is clear: there’s a structural bullish view. BTC is expected to reach the $100,000-$118, 000 region, not break out of it. Deribit said the investor’s predictions that BTC will rise to the $100,000 to $118, 000 range by the end of the year, but will not exceed the upper limit. *This is not investment advice.
https://bitcoinethereumnews.com/bitcoin/a-big-whale-in-bitcoin-btc-traded-1-7-billion-at-these-price-levels-or-does-he-know-something/
Weekend rally boosts Bitcoin, altcoins face heavy losses
Bitcoin rallied over the weekend after sharp weekly losses, driven by thin market liquidity, CME futures gaps, and major geopolitical developments. Bitcoin experienced a weekend rally following a week of significant losses across cryptocurrency markets, according to market data. The digital asset had approached critical support levels earlier in the week, while numerous altcoins including Hyperliquid (HYPE) and Zcash (ZEC) recorded double-digit percentage losses over the seven-day period. The weekend price increase follows a pattern observed over recent weeks, in which Bitcoin (BTC) has gained ground on Saturdays and Sundays before resuming declines during weekdays, according to chart analysis. Market observers have attributed this phenomenon to reduced liquidity during weekend trading periods. Cryptocurrency markets brace for Bitcoin and alt-coin rally Cryptocurrency markets experience dramatically lower trading volumes at weekends, when Bitcoin exchange-traded funds on Wall Street are closed and institutional investors are not actively trading. Research published by Advances in Consumer Research in August found that trading volumes tend to be 20% to 25% lower at weekends, “creating a thinner market environment where momentum-driven trades can exert greater price impact.” The study determined that weekend momentum strategies “consistently outperform their weekday counterparts across all cryptocurrencies, with mean daily returns on weekends often doubling those on weekdays.” The effect appears more pronounced among digital assets with smaller market capitalizations, according to the research. Bitcoin futures traded on the Chicago Mercantile Exchange close at the end of the working week. The price movements that occur during weekend trading create what market participants refer to as the “CME gap,” with prices frequently reverting to pre-weekend levels once futures markets reopen, according to market analysts. Beyond trading volume factors, specific developments may have contributed to the weekend price movement. Ongoing negotiations to end the conflict in Ukraine have progressed, with talks taking place in Switzerland between delegates from the United States and Ukraine over the weekend. Former President Donald Trump has proposed a 28-point peace plan as part of diplomatic efforts. Futures across the Dow Jones, S&P 500 and Nasdaq 100 all rose on Monday morning as investors assessed the diplomatic developments, according to market data. The Federal Reserve’s decision to leave open the possibility of an additional rate cut next month may have also influenced market sentiment. Bitcoin faces near-term challenges in attempting to breach key resistance levels. The Thanksgiving holiday week in the United States will see Wall Street closed on Thursday and operating for only a half-day on Friday, resulting in reduced trading volumes similar to weekend conditions. Bitcoin recorded its first weekly close in positive territory in four weeks, according to market data. However, the cryptocurrency remains down 23% for the current quarter, placing it on track for its worst year-end performance since 2018.
https://crypto.news/weekend-rally-boosts-bitcoin-altcoins-face-heavy-losses/
BTC Price Prediction: Sharp Rebound to $95,000-$100,000 by December 2025
BTC Price Prediction: Technical Setup Points to December Recovery BTC Price Prediction Summary • BTC short-term target (1 week): $88,000-$90,000 (+4-7% from current levels) • Bitcoin medium-term forecast (1 month): $95,000-$100,000 range • Key level to break for bullish continuation: $90,000 resistance • Critical support if bearish: $80,600 (strong support level) Recent Bitcoin Price Predictions from Analysts The latest BTC price prediction landscape reveals a divided analyst community. While CoinLore’s short-term Bitcoin forecast projects a decline to $83,176 by November 23rd, their long-term outlook remains aggressively bullish with a BTC price target of $195,067 by 2026. This stark contrast highlights the uncertainty in current market conditions. Derive. xyz presents a more conservative view, suggesting a 50% probability that Bitcoin will end 2025 below $90,000, with only a 30% chance of breaking $100,000. However, Fundstrat’s Sean Farrell offers the most compelling contrarian perspective, identifying Bitcoin’s approach to a critical value zone that could trigger a sharp rebound. The consensus among these predictions suggests that while near-term weakness is possible, the technical setup increasingly favors a recovery scenario, particularly given Bitcoin’s oversold conditions. BTC Technical Analysis: Setting Up for Oversold Bounce The current Bitcoin technical analysis reveals compelling evidence for an imminent reversal. With the RSI plunging to 22. 49, Bitcoin has entered deeply oversold territory not seen since major market bottoms. Historical analysis shows that RSI readings below 25 have consistently marked significant buying opportunities for BTC. The MACD histogram at -1290. 35 confirms bearish momentum, but the divergence between price action and RSI suggests this selling pressure may be nearing exhaustion. Bitcoin’s position at 0. 02 within the Bollinger Bands indicates the price is hugging the lower band support at $83,869. 92, a classic setup for mean reversion toward the middle band at $97,571. Volume analysis from Binance shows $2. 27 billion in 24-hour trading, indicating sufficient liquidity to support a meaningful bounce. The daily ATR of $4,396. 80 suggests that any reversal could produce significant price movements in either direction. Bitcoin Price Targets: Bull and Bear Scenarios Bullish Case for BTC The primary BTC price prediction scenario targets a recovery to $95,000-$100,000 within 4-6 weeks. This Bitcoin forecast is based on several technical factors converging simultaneously. First, the oversold RSI condition typically resolves with a 15-25% bounce, which would place Bitcoin near $97,000. Second, a reclaim of the 20-day SMA at $97,571 would confirm the reversal and open the path to test the previous consolidation zone. For this bullish scenario to materialize, Bitcoin needs to break above $90,000 decisively, which represents both the immediate resistance and the psychological barrier identified in recent analyst reports. A successful break would likely trigger short covering and renewed institutional buying, potentially driving the BTC price target toward $100,000. Bearish Risk for Bitcoin The alternative scenario sees Bitcoin breaking below the critical $80,600 support level, which could trigger a cascade toward $76,000-$78,000. This bearish Bitcoin forecast would invalidate the oversold bounce thesis and suggest that the current weakness reflects fundamental rather than technical selling pressure. Key risk factors include potential regulatory concerns, macroeconomic headwinds affecting risk assets, and continued outflows from Bitcoin ETFs. If the $80,600 support fails, the next significant level lies near the 52-week low at $76,322, representing a potential 9-10% decline from current levels. Should You Buy BTC Now? Entry Strategy Based on the current Bitcoin technical analysis, a staged entry approach appears optimal. The immediate BTC price prediction suggests waiting for either a bounce from current levels or a break below $80,600 before taking action. For aggressive buyers, initial positions could be established near $83,000-$84,000 with stop-losses below $80,000. Conservative investors should wait for confirmation above $88,000-$90,000 before entering, as this would signal the beginning of the predicted recovery phase. Position sizing should reflect the elevated volatility, with risk management paramount given the conflicting analyst forecasts. Consider scaling into positions rather than making large single entries, particularly given the mixed sentiment in current BTC price predictions. BTC Price Prediction Conclusion The weight of technical evidence supports a medium-confidence prediction that Bitcoin will rebound toward $95,000-$100,000 by late December 2025. The oversold RSI, Bollinger Band positioning, and historical precedent for bounces from these levels provide the foundation for this Bitcoin forecast. However, the $80,600 support level represents the critical make-or-break point for this prediction. A decisive break below this level would invalidate the bullish scenario and suggest deeper weakness ahead. Key indicators to monitor include RSI divergences, volume confirmation on any bounce attempts, and the market’s reaction to the $90,000 resistance level. The timeline for this BTC price prediction to materialize extends through December 2025, with initial confirmation expected within the next 1-2 weeks if the oversold bounce scenario unfolds as anticipated. Image source: Shutterstock.
https://Blockchain.News/news/20251122-price-prediction-btc-sharp-rebound-to-95000-100000-by
CoinDesk 20 Performance Update: Bitcoin (BTC) Price Falls 3.3% as Index Declines
Bitcoin Cash and BTC (-3. 3%). Laggards: APT (-8. 8%) and NEAR (-7. 8%). The CoinDesk 20 is a broad-based index traded on multiple platforms in several regions globally. More For You Protocol Research: GoPlus Security By CoinDesk Research Nov 14, 2025 Commissioned byGoPlus What to know : As of October 2025, GoPlus has generated $4. 7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2. 5M (approx. 53%), followed by the SafeToken Protocol at $1. 7M. GoPlus Intelligence’s Token Security API averaged 717 million monthly calls year-to-date in 2025 with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month. Since its January 2025 launch the PS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1. 1B while derivatives volume peaked the same month at over $4B.
https://www.coindesk.com/coindesk-indices/2025/11/21/coindesk-20-performance-update-bitcoin-btc-price-falls-3-3-as-index-declines
Markets in Late-Cycle Phase, Not Recessionary: QCP
The behavior in global financial markets is a classic late-cycle characteristic and not a signal of an imminent recession, Singapore-based crypto trading firm QCP Capital said in a Wednesday note, referring to a broad-based correction across equities, gold, and crypto markets. Bitcoin is trading flat over the past 24 hours at around $91,750, attempting a recovery after a brief dip below $90,000, according to CoinGecko data. The pullback was amplified by thinner liquidity and persistent spot Bitcoin ETF outflows, underscoring the asset’s sensitivity to macro shifts, Decrypt was told. “The reasons behind this round of broad-based asset corrections are highly consistent with tightening liquidity, a reversal in policy expectations, declining risk appetite, and valuation adjustments after excessive gains,” Tim Sun, a senior researcher at HashKey Group, told Decrypt. The rapid repricing of investors’ sentiment and expectations amid macro uncertainty is evident in the odds of a quarter-point rate cut, which dropped from over 60% a week ago to 32. 8% today, according to CME’s FedWatch tool data. On prediction market Myriad, owned by Decrypt‘s parent company Dastan, users put the chance of a 25bps rate cut in December at just 32%. Duration-sensitive assets like Bitcoin, as a result, have been hit hard, QCP analysts noted, highlighting crypto’s lagging performance even as equities benefit from strong corporate earnings. Equities, on the other hand, appear more resilient due to strong earnings from AI-based equities’ corporate capital expenditure and strong household balance sheets. “We believe the broader financial markets are firmly past the early-cycle phase,” Jyotsna Hirdyani, South Asia Head at Bitget, told Decrypt. She characterized the current environment as a “late-mid to early-late stage, where momentum is slowing, vulnerabilities are rising, and markets are more sensitive to macro shocks, but the classic recession markers are not flashing red yet.” The U. S. credit spreads have widened only slightly, and systemic stress remains limited, suggesting the current correction is a positioning shakeout rather than a fundamental breakdown, Sun explained, echoing QCP Capital’s take. Is the Bitcoin bottom in? Regarding Bitcoin’s trajectory, analysts see a bottoming process underway but caution against expecting a rapid V-shaped recovery. “Bitcoin’s bottoming process is primarily driven by liquidity, market sentiment, and the distribution of coin-holding,” the HashKey analyst said. “A weak rebound followed by range-bound bottom formation is the more probable scenario. A true trend reversal still requires stabilization in macro liquidity.” While structural metrics like exchange balances suggest underlying resilience, “confidence is limited because liquidity conditions remain fragile and macro sentiment is weak,” Hirdyani added, stating that confirmation of a durable bottom would require “higher lows, improving ETF and spot inflows, and clearer policy signals.” All eyes are now on the December FOMC meeting, which could provide the catalyst for a more sustained recovery if it delivers dovish language regarding the 2026 policy path. Investor sentiment remains muted, with Myriad users putting a 63% chance on Bitcoin’s next move taking it to $85,000 rather than $115,000.
https://bitcoinethereumnews.com/tech/markets-in-late-cycle-phase-not-recessionary-qcp/
Bitcoin (BTC) Weakness Fails to Ignite Altcoin Season as On-Chain Data Shows Steady Activity
Bitcoin price continues to show weakness, which has trickled bearish sentiments into major altcoins like Ethereum, Solana, ADA, and DOGE. Analyst suggests that the next altcoin season is still looming due to Bitcoin and Ethereum underperformance. Bitcoin (BTC) resumed today’s trade in red, with the price falling back to around $91,000. Analysts noted that the Bitcoin weakness has failed to ignite the next altcoin season, where alternative cryptocurrencies like Ethereum (ETH) show bullish performance. Bitcoin Dominance Plunge, But Altcoins Still Bleeding According to MarketCap data, the Bitcoin price has declined by 15. 4% this month. This was accompanied by a drop in its dominance rate. As we discussed earlier, Bitcoin dominance measures the percentage of the BTC market capitalization relative to the entire crypto market’s cap. High dominance means BTC is dominating, while a drop suggests money is flowing to alternative cryptocurrencies. Usually, a dominance drop excites traders because it implies investors are selling BTC to buy altcoins, kickstarting the “alt season.” Altcoin Season is a market phase where top cryptocurrencies like ETH, Solana (SOL), and Dogecoin (DOGE) rally higher than BTC. It is often driven by speculation, FOMO, and rotating capital from BTC. However, analysts have pushed back that the recent drop in Bitcoin dominance is not a bullish rotation to altcoin. According to them, it is part of a reset, meaning a market-wide cooldown after over-leveraged trading. For emphasis, altcoins like Cardano (ADA), DOGE, and Solana have dropped more than BTC over the past 30 days. While BTC declined by 15. 4%, ADA plunged by 26. 9%, and Solana decreased by 27%. These declines showed that the altcoins are not yet attracting capital. Furthermore, most altcoins/BTC pairs are weak. For instance, the ETH/BTC only dipped slightly, meaning ETH is not surging ahead. However, the XRP/BTC is holding strong. Still, it hints at selective resilience in specific assets rather than a broad altcoin surge. Analyst Says We are Not Yet in an Alt Season Market analyst and Head of Markets at Hex Trust, Rohit Apte, frames the BTC drawdown as a continuation of deleveraging. Apte says an altcoin season has not yet arrived, as most altcoins have underperformed both Bitcoin and Ethereum on a relative basis. Apte explained that for an alt season to start, Bitcoin and ETH need to stabilize and consolidate. Meanwhile, traders are reducing exposure without aggressively rotating into altcoins, meaning they amplify market moves. This paints caution as the market trend, with no panic-selling, and no bold bets either. Furthermore, there are no signs of speculative fever within blockchain building on the Ethereum network. Base, the Coinbase layer-2 blockchain solution, stands out as the current hotspot. The layer-2 blockchain now processes about 19 million daily transactions. Other chains like Optimism, Arbitrum, Polygon, and Celo are steady, processing millions of transactions without congestion. True alt seasons usually feature network overloads, high fees, and explosive activity across multiple chains.
https://bitcoinethereumnews.com/bitcoin/bitcoin-btc-weakness-fails-to-ignite-altcoin-season-as-on-chain-data-shows-steady-activity/
Bitcoin Price Drop Tests Strategy BTC Holdings, But Gains Persist
TLDR Strategy’s Bitcoin holdings remain profitable despite Bitcoin’s recent price drop below $92,000. The company’s average purchase price for Bitcoin is significantly lower than the current market price, providing a cushion against volatility. Despite market fluctuations, Strategy continues to accumulate Bitcoin and dismisses the idea of selling during market stress. The CryptoQuant uPnL chart shows that Strategy’s holdings have remained in profit even after past market crashes. Prediction markets are pricing in a further Bitcoin price decline, but Strategy’s Bitcoin strategy remains unchanged. Bitcoin’s recent drop below $92,000 has raised concerns about the sustainability of Michael Saylor’s BTC holdings under the Strategy. Despite the price decline, a CryptoQuant chart shows that the Strategy’s holdings remain in profit, even after multiple market crashes. The company has maintained an aggressive Bitcoin accumulation strategy, dismissing volatility as a temporary concern. However, recent developments are testing investor confidence. Strategy’s Bitcoin Holdings Remain Profitable Despite Market Decline CryptoQuant’s unrealized profit and loss (uPnL) chart, which tracks Strategy’s Bitcoin position since 2020, paints a positive picture. Despite Bitcoin’s recent price drop of over 13% in the past week, Strategy’s holdings still show substantial unrealized gains. The chart shows persistent green bars, indicating that the company’s Bitcoin bet remains profitable even through multiple market dips. During past crashes, such as in 2021 and 2022, there were brief periods of unrealized losses, marked by red zones on the chart. However, these losses were short-lived and quickly reversed. “The company’s average purchase price for Bitcoin is well below the current market price, giving them a significant cushion against volatility,” said an industry analyst. Even with the ongoing sell-off, Strategy continues to hold and accumulate Bitcoin. Michael Saylor has made it clear that his company will not sell its Bitcoin holdings, despite market fluctuations. “Bitcoin is an exponential treasury asset,” Saylor stated. He believes that, in the long run, Bitcoin will outperform other assets, including gold. Bitcoin’s Decline Raises Concerns Over Sell-Off Risks Bitcoin has fallen by more than 16% over the past six months, and recent price action is testing investors’ resolve. The current market downturn has heightened fears among traders. Recent events, including the movement of Bitcoin from the Mt. Gox wallet to Kraken, have sparked rumors of further sell-offs, adding to market uncertainty. The sell-off has contributed to increased volatility and growing concerns about Strategy’s balance sheet. While the company’s BTC holdings are still in profit, the broader market remains under pressure. Prediction markets are now pricing in the possibility of Bitcoin dropping below $80,000, with odds increasing to 38%.
https://blockonomi.com/bitcoin-price-drop-tests-strategy-btc-holdings-but-gains-persist/