Bitcoin Slides to $58,000 Despite U.S. Stock Gains as Strategy Sale Fears Mount
U.S. equities and cryptocurrencies are moving in opposite directions. A chip-stock rally lifted technology shares and gave the Nasdaq its best quarterly performance since 2020, while bitcoin retreated to $58,000. Strategy, which holds a large amount of bitcoin, has become a key gauge of potential selling pressure because its capital transactions could affect supply.
Bitcoin recently fell to about $58,000, failing to follow the U.S. stock market higher. Strategy adjusted the capital structure supporting its bitcoin strategy and proposed a monetization plan capped at about $1.25 billion, raising concerns that the related assets could subsequently enter the market. The report did not provide the event's exact date and cited 2020 only as the benchmark for the Nasdaq's quarterly performance.
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The history behind this eventBitcoin Faces Resistance as Strategy Funding Strain Raises Risk of Slide to $54,000
Bitcoin came under pressure ahead of Federal Reserve Chair Kevin Warsh’s first interest-rate decision, with markets watching whether high interest rates and corporate buying can continue to provide support. Bitfinex said the rebound was driven mainly by seller exhaustion rather than fresh capital inflows, making the financing capacity of Strategy, formerly MicroStrategy and the largest corporate bitcoin holder, a key factor for the price.
Bitcoin fell to a week-to-date low of $64,500 on June 17, breaking below the $65,000 threshold. It had previously rebounded 13.5% from a June 5 low of $59,200. Strategy’s STRC preferred stock closed at a record low of $91.79 on June 16, more than 8% below its $100 face value. Bitfinex warned that bitcoin could fall to $54,000 if it breaks below $60,000 and the previous low of $59,200.
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