Bitcoin's $66,000 Breakout Hindered by Strategy's STRC Decline

Crypto analyst Michael van de Poppe said Bitcoin's consolidation has not yet turned into a real breakout above $66,000, while the broader market faces headwinds from Strategy's STRC preferred shares weakness. According to van de Poppe, a break above $66,000 is needed to trigger a sustained rally; until then, Bitcoin remains stuck in an unfavorable trading zone.

Analyst WilcosX explained that STRC's decline below par undermines Strategy's Bitcoin accumulation model, which previously relied on issuing preferred shares near $100 to fund BTC purchases. As STRC loses value, Strategy's cost of capital rises, making new issuance less attractive. The company has already suspended its at-the-market share program and sold a portion of its Bitcoin holdings to pay dividends—the first time doing so.