Analysis: Strategy Preferred Shares Fall Below $100, Bitcoin May Retreat to $70,000
Foresight News reports, citing Cointelegraph, that due to Strategy’s preferred stock Stretch (STRC) price falling below the par value of $100, the company may pause its Bitcoin purchases this week, which could cause the price of Bitcoin to drop back to $70,000. Previously, Strategy disclosed the purchase of 34,164 Bitcoins for $2.54 billion, with 86% of its funding (about $2.17 billion) raised through the sale of STRC. Historical data shows that when the STRC price falls below $100, the price of Bitcoin drops by an average of approximately 30%. In addition, Bitcoin’s technical chart reveals a flag consolidation pattern; if the support level fails, it could fall back into the $67,000 to $69,000 range in April. On the macro side, due to market doubts over the US-Iran peace agreement and US President Trump stating that if an agreement is not reached by Wednesday it is unlikely that the ceasefire will be extended, market risk appetite has weakened.
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