BTC Escapes 6-Month STRC Ex-Dividend Downtrend on Short Squeeze, U.S. Buying Pressure
For the first time in six months, Bitcoin is up in the week following Strategy’s STRC ex-dividend, as a result of negative funding and Coinbase premium.
Breaking the Trend
* First up in 6 months: BTC currently trading at ∼$79K compared to ∼$75K on STRC ex-dividend of April 15.
* Normally, STRC falls by its dividend amount on ex-dividend day and gradually rebounds back to ∼$100 par in about 2 weeks. Currently valued at $99.47.
* Once STRC reaches par, Strategy will be able to utilize its ATM facility for issuing shares and buying more Bitcoin.
Why BTC is Moving Up
* Squeeze trade: Funding rates of perpetual futures are still negative (short pays long), showing bearish sentiment. With price rising, shorts have been squeezed, amplifying upward pressure.
* American demand: Consistent Coinbase premium implies that BTC price is higher on US exchanges than elsewhere, indicating consistent spot buying.
Activity of Strategy
* Strategy revealed its third-biggest BTC buy in history at 34,164 BTC. The price initially held firm around $75K before moving up.
* Shares of MSTR up +9% Wednesday to $178, with the company likely using common stock ATM for further BTC purchases.
* Strategy continues to hold biggest BTC holdings in public company.
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