Singapore-based institutional digital asset trading firm, QCP Capital, has linked Bitcoin’s lack of bullish momentum to the industry’s expectation that Strategy could sell more BTC to pay dividends. According to Chinese crypto reporter Colin Wu, concerns about Strategy’s potential to sell more Bitcoins are keeping investors away from the cryptocurrency.
The QCP’s report reveals that Bitcoin remains capped below $66,000 despite the US-Iran MOU easing energy disruption risks, reflecting buyers’ reluctance to return to the market. The firm analyzed Strategy’s recent activities, highlighting the dynamics leading to the dominant sentiment among Bitcoin investors.
Strategy has bought back $1.5 billion of its 2029 convertible senior notes, raised about $200 million through MSTR share sales, and continues to use the proceeds to buy BTC, extending its cash runway for dividend payments to around 7.5 months. QCP thinks this series of events has led to an overhang that could continue to limit BTC’s participation in broader macro optimism.
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Bitcoin staged a temporary rebound last week amid events that culminated in the agreement between the US and Iran to tentatively end the conflict in the Middle East. The cryptocurrency rallied over 13% last week, reaching a local high of $66,949 before pulling back, according to data from TradingView.
Notably, the US-Iran MOU included reopening the Strait of Hormuz, a major global energy transportation channel that was blocked, leading to a significant escalation in energy prices worldwide. The effect of the blockade rippled through the global economy, impacting asset prices, including Bitcoin.
(adsbygoogle = window.adsbygoogle || []).push({});Global assets responded positively to the agreement between the US and Iran, with risk assets like the S$P 500 surging over 100 points to hit new record highs. In the meantime, geopolitical risk premiums also evaporated, causing crude oil to plummet below $75 per barrel.
Bitcoin decoupled from the resurgence after a brief rally, as highlighted earlier, and QCP thinks the factors behind that are mainly sentimental. Perhaps an established position from Strategy on whether to sell more BTC could influence the main narrative for Bitcoin’s next move.
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