In brief – Bitcoin hit an intraday low of $78,795 as ETFs posted $630 million in outflows, the largest daily exit in three months. – Strategy’s STRC stock has driven mid-month buying rallies, ramping up from 4,467 BTC in January to 46,872 BTC in April. – Myriad users remain…
timistic, assigning an 85% chance that Bitcoin’s next major move will take it to $84,000. Bitcoin dipped below $80,000 this week, but one analyst expects the decline to be brief—pointing to a structural buying mechanism tied to Strategy’s preferred stock that has fueled mid-month rallies for three consecutive months
The leading crypto is trading at around $79,680, down 0.5% over the past 24 hours according to CoinGecko data, after hitting an intraday low of $78,795. The drop comes as U.S. spot Bitcoin ETFs posted $630.4 million in net outflows on May 13, the largest daily exit in three months. “This dip will be short-lived,” Andri Fauzan Adziima, research lead at Bitrue Research Institute, told Decrypt. “We’ve seen a classic liquidity sweep of recent lows around $78,000–$79,000, followed by a solid defense of the monthly 50MA and a quick reclaim above $80,000. On-chain flows show large wallets continuing to accumulate aggressively.” However, there’s another factor working behind the scenes—Bitcoin treasury firm Strategy’s preferred shares STRC, pronounced Stretch.
The STRC mechanism Strategy’s STRC has fueled mid-month rallies for three consecutive months, according to a Tuesday report from K33 Research. The Bitcoin treasury company has ramped up its Bitcoin purchases through this instrument from 4,467 BTC in January to 22,131 BTC in March and nearly 46,872 BTC in April. This Friday marks another STRC ex-dividend date, which could spark another mid-month rally soon, according to Vetle Lund, the firm’s head of research.