Tag: Bitcoin

  • Bitcoin Dips Below $60,000 as Strategy’s Financing Model Triggers Fresh Market Jitters

    Bitcoin Dips Below $60,000 as Strategy’s Financing Model Triggers Fresh Market Jitters

    Bitcoin (BTC) has fallen below $60,000, trading at $59,900 with a 2.76% decline in the last 24 hours, intensifying stress on the cryptocurrency market. Investor concerns are now centered on the sustainability of Strategy’s Bitcoin financing model, which relies on raising capital through common shares, preferred stock, and other securities to buy Bitcoin.

    While this approach helped Strategy build one of the largest corporate Bitcoin treasuries, falling crypto prices and rising financing costs are testing its durability. The company’s preferred stock, STRC, has become a key pressure point. Designed to attract income-focused investors via monthly dividends while funding Bitcoin purchases, STRC has dropped from $100 to around $75, leaving many investors with unrealized losses.

    The yield on STRC has risen as demand weakened, potentially increasing Strategy’s cost of capital and reducing its future Bitcoin buying capacity. This, in turn, could dampen institutional demand for the cryptocurrency. Alex Blume, founder and CEO of Bitcoin asset management firm Two Prime, noted that Strategy’s recent downtrend reminds investors of past corrections. “The recurring issues at Strategy are unsettling the market and evoking memories of previous major crises in the cryptocurrency space,” he said.

    Adding to the unease, Strategy disclosed its first Bitcoin sale since 2022—a modest 32 BTC. However, the move broke founder Michael Saylor’s long-held “never sell Bitcoin” policy, signaling a potential shift in strategy. Analysts stress that STRC is not a traditional bond; it lacks a fixed maturity date, is not secured by Bitcoin collateral, and dividends may be cut or eliminated by the board. This makes the investment riskier than many income-focused investors originally anticipated.

    Andrejica Cobeljic, head of derivatives trading at Amina Bank, explained that the recent pullback is partly due to cyclical weakness, but more importantly reflects fading confidence in Strategy’s model. “The immediate trigger for this leg of Bitcoin’s decline is weakening market cycles, but the deeper underlying force is the erosion of credibility in Strategy’s approach,” he said.

    As retail participation cools and institutional demand for Bitcoin slows, the sentiment shift below $60,000 underscores that market confidence now hinges not only on price action but also on the vitality of Strategy’s financing engine.

  • Bitcoin Options Expiry Looms as Crypto Market Sinks to New Lows

    Bitcoin Options Expiry Looms as Crypto Market Sinks to New Lows

    Bitcoin and Ethereum options worth approximately $11 billion are set to expire on Friday, June 26, as the cryptocurrency market trades near fresh lows. The batch includes around 153,500 Bitcoin contracts valued at roughly $9.3 billion. Month-end and quarter-end expiries often bring sharper price swings, adding to market tension.

    The total crypto market value has dropped by more than $180 billion since Monday, slipping to an almost two-year low. Spot prices have taken another hit as traders face a fresh wave of pressure.

    Bitcoin traded near $58,000 before recovering toward $60,000 in Asian trading, down 2.7% on the day and 4.5% on the week. The expiry could add more pressure to an already battered spot market.

    Bitcoin Options Lean Toward Calls

    Bitcoin options show a put/call ratio of 0.73, indicating call sellers slightly outweigh put sellers in this week’s expiration. Even so, the setup still points to a tense finish for traders. Max pain sits near $72,000, about $13,000 above current spot prices, meaning most contracts would expire out of the money.

    Open interest remains highest at the $80,000 strike on Deribit, reaching $1.4 billion. Short sellers also hold about $1 billion in open interest at $60,000. Across all exchanges, total BTC options open interest has climbed to $34 billion, according to Coinglass.

    Deribit noted that BTC heads into expiry well below its $72,000 max pain level, and recent quarterly expiries have shown limited evidence of a stable pinning effect before settlement.

    Ethereum Joins the Wider Risk-Off Move

    Ethereum options add another layer of pressure. Around 1 million ETH contracts worth $1.6 billion are expiring, with max pain near $2,000 and a put/call ratio of 0.54. Total ETH options open interest across exchanges stands near $5.7 billion.

    Greeks Live said puts continue to command a clear premium over calls across major tenors, with near-term downside protection remaining in demand while longer-dated pricing stays more stable.

    Ether fell more than 5% to about $1,555 and briefly touched $1,522. XRP dropped 4.9% to $1.03, Dogecoin slid 3.8% to $0.074, and Solana fell 1.2% to $68. Ether was also briefly overtaken by Tether in market cap.

    Pressure also came from outside crypto. Global stocks fell to a two-week low after Apple dropped 6.1% on higher product prices. South Korea’s Kospi sank as much as 9%, while Nasdaq 100 futures fell 1.5%. Brent crude slipped below $74 a barrel after a strike in the Strait of Hormuz briefly renewed supply concerns.

    What’s Next?

    The $11 billion Bitcoin options expiry arrives as crypto markets remain under heavy pressure following sharp price declines across major digital assets. Rising open interest, key max pain levels, and broader weakness in global markets leave traders focused on potential volatility during the quarterly settlement.