Bitcoin Breaks $79,000, Ending Post-Ex-Dividend Slump Tied to Strategy’s STRC

Strategy, formerly known as MicroStrategy, is the world’s largest corporate holder of bitcoin, having financed years of purchases through debt and equity issuance. The company owns more than 840,000 tokens at an average cost of $75,385 each, making its balance sheet highly sensitive to cryptocurrency prices and a closely watched test of the corporate bitcoin-treasury model.

As of Aug. 21, bitcoin had gained about 20% in two days, breaking above $77,000 and briefly topping $79,500. The rally pushed Strategy’s reserve back above its breakeven level after a period of unrealized losses. At the higher price cited in reports, the company was sitting on an estimated $1.4 billion paper profit from its bitcoin holdings.

Strategy, formerly MicroStrategy, is the world’s largest corporate holder of Bitcoin, and its continued purchases have long supported market demand. If financing constraints turned the company into a seller, Bitcoin prices could fall and Strategy’s own liquidity could deteriorate, potentially creating a cascade of liquidations reminiscent of Terra Luna in 2022. However, the company’s net leverage ratio is just 11%, and no debt covenant currently requires it to sell Bitcoin.

Strategy said on May 15, 2026, that it would use $1.38 billion in proceeds from share sales to repurchase convertible debt and pause Bitcoin purchases. Bitcoin subsequently fell 21% in 10 days, retesting $61,000 for the first time in four months. The company’s cash balance dropped to $900 million, enough to cover only six months of dividends. However, 10x Research pointed to $5.4 billion in net spot ETF redemptions since May 12, arguing that inflation and institutional selling pressure were the main drivers.

Bitcoin is widely viewed as a gauge of global risk appetite, while the area around $77,000 also overlaps with the cost basis of short-term holders. Whether it can sustain a breakout has implications for spot ETFs, derivatives and onchain positioning. Checkonchain said more than 15% of the circulating supply was acquired between $74,000 and $83,000, making pullback risk a particular concern around this dense zone of underwater holdings.

Bitcoin briefly approached $77,500 on May 1. Open interest in Deribit put options with a $76,000 strike and a June 26 expiry rose 22.5%. Santiment data also showed that more than $770 million in BTC flowed onto exchanges during the previous week. By May 25, weekly net inflows stood at about 18,000 BTC, leaving the rebound exposed to potential selling pressure.

Strategy has long raised funds through debt and preferred stock offerings to increase its Bitcoin holdings, making it a closely watched gauge of corporate crypto treasury strategies. The return of its STRC preferred stock to its $100-per-share par value helps restore the company’s financing capacity and could bring substantial new buying to the Bitcoin market.

The latest analysis suggests Strategy could buy at least 3,127 Bitcoin over two days as soon as this week, exceeding the 3,000 cited in the headline. As stablecoins’ market share declines and capital shifts into risk assets, Bitcoin is expected to strengthen in the second quarter and could break above $100,000 by the end of June.

Bitcoin tumbled from about $98,000 to $60,000 in early 2026, losing nearly 40% in just two weeks and making $73,000 a key test of whether the rebound can develop into a sustained trend. A “bull trap” occurs when prices reverse sharply after a breakout, trapping buyers who chased the rally. The latest advance is therefore also seen as a test of whether the bear market has ended.

On March 16, Bitcoin gained more than 3% over 24 hours to $73,700 and rose above its 50-day moving average of $71,125 for the first time in two months. An FxPro analyst called it a sign of a medium-term reversal. CoinDesk, however, reported that market makers held billions of dollars in net short gamma exposure near $75,000, potentially amplifying volatility. Whether the breakout can hold remains uncertain.

Bitcoin and global risk assets had recently come under pressure from the conflict involving Iran and concerns over shipping through the Strait of Hormuz. The strait is a vital artery for global crude oil shipments, and the risk of a blockade could drive up oil prices and inflation expectations. As tensions involving Iran eased, capital flowed back into crypto assets and technology stocks, making $76,000 a key dividing line between bullish and bearish sentiment.

After Iran announced the Strait of Hormuz would be fully open during the ceasefire, crude oil prices plunged. Bitcoin first reclaimed $75,000, then broke above $76,000 and briefly reached $78,000, while MicroStrategy shares (MSTR) jumped 12%. Around April 17, Bitcoin quietly set a new 10-week high as futures trading volume and open interest rose significantly. The market is testing resistance at $78,000, while traders are watching whether Bitcoin could reach $88,000 within weeks.

Bitcoin prices are often driven by a combination of U.S. equity-market risk appetite, geopolitical developments and leveraged positions. A blockade of the Strait of Hormuz, a vital route for global energy shipments, would ordinarily intensify demand for safe havens. Bitcoin instead rose after the blockade took effect, a move the market attributed to its correlation with U.S. stocks and trading on the view that the bad news had been fully priced in. However, extreme fear indicated that confidence remained fragile.

After the Strait of Hormuz blockade took effect, Bitcoin climbed as high as $76,063 before quickly retreating to around $74,000. CoinGlass data showed that about 180,000 traders were liquidated over the 24-hour period cited in the report, with roughly $434 million in short positions wiped out. Momentum from ceasefire hopes subsequently weakened as investors turned their attention to tangible results.

Bitcoin (BTC) is highly sensitive to inflation and interest-rate expectations. A smaller-than-expected increase in the U.S. Producer Price Index (PPI) signaled easing upstream price pressures and raised expectations of a shift toward looser monetary policy, lifting risk assets including cryptocurrencies. The $76,000 level has become a key test of whether the rebound can continue.

In the latest rally, BTC briefly broke above $76,000 after the U.S. PPI release, posting its strongest performance since mid-March, but it subsequently failed to hold that level. On-chain analytics firm CryptoQuant warned of mounting near-term selling pressure, while traders realized profits on roughly 63,000 BTC during the advance. The market is now watching whether Bitcoin can regain a firm foothold above $76,000.

Bitcoin’s recent performance has been shaped by both U.S. economic fundamentals and derivatives positioning. Strong economic data and an expansion in services lifted U.S. stocks, drawing capital back into risk assets. As Bitcoin broke through a key resistance zone, leveraged short sellers were forced to cover, further amplifying the rally and sharpening the market’s focus on support levels and pullback risks.

Bitcoin climbed as high as $74,400, breaking above $74,000 and reaching its highest level since February. Ether and other major cryptocurrencies gained as much as 7%. CoinGlass data showed that liquidations across the crypto market approached $600 million over the latest 24 hours, including about $430 million in short-position losses, indicating that a short squeeze and derivatives trading were important forces behind the rally’s acceleration.

Bitcoin is considered a highly volatile risk asset and typically comes under pressure when the dollar strengthens and U.S. Treasury yields rise. Its ability to hold above $71,000 this time reflects resilient buying demand. MicroStrategy, now known as Strategy, has continued raising funds to accumulate BTC, making it the listed company with the world’s largest Bitcoin holdings.

As of July 19, 2026, Bitcoin remained above $71,000 and outperformed U.S. stocks, showing little drag from simultaneous increases in the dollar, oil prices and U.S. Treasury yields. Strategy raised about $776 million through its STRC preferred security, enough to potentially buy about another 11,000 BTC.