Bitcoin stuck at $66,000: Strategy issues slow down the market
The Bitcoin market is in a consolidation phase, and in my assessment, it is too early to talk about a real breakout. The key trigger for resuming the upward movement is a confident break above the $66,000 level, but a serious obstacle stands in the way, related to Strategy's STRC preferred shares amid a correction in the stock markets.
As long as the price remains below this mark, any talk of growth is premature. If Bitcoin tests the lows again but quickly recovers, it will be a strong signal to open long positions. However, the intermediate zones between current levels are not the most favorable area for active trading.
The Problem with the Strategy Model
The main goal for the week is to hold the 200-week moving average, which in past cycles served as a reliable bottom. But the dependence on STRC, which I pointed out, is becoming increasingly critical. A drop in these shares below the par value of $100 is not just a story about "preferred shares declining." It is a direct blow to Strategy's Bitcoin accumulation machine.
Previously, the scheme worked simply: the company issued STRC around $100, paid high dividends, directed funds to buy BTC, and Bitcoin's growth supported the entire structure. When STRC trades around $88–89, this cycle becomes much harder. With a dividend of 11.5% on a par value of $100, the effective yield for buyers approaches 13%, and the market demands an increasingly higher return for holding Strategy's credit. On June 22, the security dropped to a record low of $82.53 — nearly 17% below par value.
Chain Reaction: How the STRC Decline Impacts Bitcoin Purchases
The consequences form a chain. The cost of capital for Strategy rises, and new issuances become unattractive: by selling STRC below par value, the company raises less money but pays dividends on the full stated value of $100. This weakens the engine of "issued preferred shares — bought BTC."
As a result, cryptocurrency purchases may slow down. If STRC ceases to be a convenient financing channel, Strategy has fewer simple ways to increase BTC holdings without using common shares, debt, cash reserves, or even small Bitcoin sales. These concerns have already been confirmed: the company paused the issuance of new shares through the market program and, for the first time, sold some BTC to pay dividends.
My analysis shows: the Strategy model works brilliantly when capital is cheap, but becomes fragile when the market demands over 13% for financing. The drop in STRC below par value exposes this weak point. As long as Bitcoin does not break above $66,000, pressure from Strategy's problems will hold the market back. Investors should closely monitor STRC dynamics — this could become a key indicator for Bitcoin's next move.