Bitcoin News
Strategy's leveraged Bitcoin treasury model is under acute stress, and one of the industry's largest asset managers has warned that the firm may struggle to keep accumulating BTC at the current pace. Research from Grayscale notes that the shift in approach from one of the world's largest Bitcoin holders has weighed heavily on broader market sentiment. The warning lands at a sensitive moment for the leading cryptocurrency, with corporate balance-sheet buying having absorbed substantial sell-side pressure throughout 2024 and 2025. Analysts argue that if Strategy steps back as the marginal buyer, the broader market loses a critical demand floor that has supported prices through previous drawdowns.
Michael Saylor's Strategy disclosed the sale of 32 BTC on Monday — a token amount relative to its 843,706 BTC stack, yet enough to jolt sentiment given its years-long pledge of accumulation only. Since the disclosure, BTC has dropped roughly 16% and Strategy's own shares have shed 12.8%, sliding to a two-month low near $126. The company also sold approximately $128 million in equity, marking a notable shift in capital-raising tactics. The optics of the first Bitcoin reduction since 2022 have reshaped how investors model the firm's ability to weather sustained drawdowns without leaning on further token liquidations.
Pressure has migrated into Stretch, Strategy's variable-rate preferred equity instrument that was designed to trade near $100 with an 11.5% dividend. The security is currently changing hands around $95, signaling that investors are demanding a higher rate of return to hold the paper. Raising the payout to restore par would balloon cash obligations and could pull forward additional BTC sales in a self-reinforcing feedback loop. Market researchers describe the dynamic as a stress test for the entire leveraged-treasury playbook, with limited capacity left to accumulate fresh tokens at depressed STRC and MSTR share prices.
Longtime Bitcoin critic Peter Schiff weighed in on social media, arguing that if Strategy is forced to lift the STRC dividend back toward par, the firm will burn through cash much sooner and be pushed to front-load Bitcoin sales to fund payments. His framing echoes a broader concern among credit-minded observers: that an instrument engineered to yield 11.5% cannot indefinitely trade at a discount without consequences. Researchers add that less Bitcoin held inside levered digital-asset-treasury structures, and more parked on diversified corporate balance sheets, would ultimately be a healthier outcome for the asset class over the long run.
Spot Bitcoin ETF flows in the United States have turned decisively negative. The cohort has now logged 15 consecutive sessions of net redemptions, with cumulative outflows topping $4.7 billion as institutional allocators trim exposure into the slide. The streak removes a second pillar of demand that had supported price action through earlier 2026 drawdowns, leaving spot markets thinner just as derivatives positioning is unwinding. With Strategy stepping aside and ETF flows reversing, the marginal-buyer vacuum is widening — and analysts warn that without a fresh demand catalyst, even modest sell pressure can drive disproportionate downside in the near term.
Bitcoin's slide is interlocked with a global rotation out of artificial-intelligence equities, dragging crypto deeper into bear market territory. Profit-taking accelerated after Broadcom's AI-chip sales outlook came in below elevated expectations, and the spillover has been swift: BTC has surrendered close to 16% from last week's $74,000-plus highs, with the bulk of the damage concentrated in the last three sessions. Traders flag $60,000 as the next psychological line in the sand on every exchange order book. A clean break would mark a return to territory last visited during the February drawdown, with the next meaningful technical floor sitting closer to $55,000.
At $62,798, Bitcoin is wedged inside a fragile band defined by immediate support at $61,383 and resistance at $63,830, with daily candlestick structure pointing lower. The relative strength index print near 17 is deep in classic oversold territory and typically marks short-term capitulation zones, yet the MACD remains bearish and the broader trend is firmly down. A reclaim of $63,830 followed by $65,977 would shift the bias and validate dip-buying. Failure to hold $61,383 opens a quick path toward the $59,817 and $55,545 supports. The bullish thesis is invalidated on a daily close beneath $59,817.