One could look at the charts this morning and start wondering if they’ve seen this movie before. After reclaiming the $91k level towards the end of last week, bitcoin slowly traded down over the weekend, only to lose all gains last week on Monday. BTC started trading downwards once news came out of Japan from Katayama that rate cuts were on the table on Sunday night. Fears of the infamous yen carry trade unwinding once again spooked markets at futures open. An unfortunate quality of being one of the most expressive risk assets humans have ever created, is the high levels of volatility and violent moves (in either direction). BTC decided to revisit the $80k levels once again, seeing lows just below $84k yesterday. Tuesday is off to a green start so far, with BTC trading just above $88k at this time of writing. But there are some new fears entering the market.
With Strategy (NASDAQ: MSTR | MSTR Price Prediction) CEO Phong Le acknowledging that there are scenarios where Strategy would in fact sell bitcoin, the market became further fearful on Monday. Le mentioned possibilities of bitcoin being sold if mNAV drops below 1, or if they are unable to raise any further capital through their creative financing mechanisms. This news combined with the MSCI wanting to delist Strategy puts Saylor in not the most favorable of positions.
Since the memory of the internet can be less than that of a goldfish at times, Strategy survived the decimation of markets in 2022, and has the ability to pay its dividends on its structured products for quite a while. Strategy just bought another 130 BTC at the end of November. Stayed tuned.
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