Bitcoin’s Dip Below $80K Could Be ‘Short-Lived’ as STRC Cycle Looms
Bitcoin dropped below $80,000 this week, partly due to U.S. spot Bitcoin ETFs experiencing $630 million in net outflows, their largest daily exit in three months. Despite this, large wallets are continuing to accumulate Bitcoin. A potential mid-month rally may be fueled by the ex-dividend date for Strategy’s STRC preferred shares, which has driven similar rallies in recent months. The process involves investors buying STRC ahead of its dividends, allowing Strategy to issue more shares and purchase additional Bitcoin. However, this month, STRC demand appears to be weaker, and only minimal Bitcoin purchases have been made via this mechanism. Bitcoin has not mirrored the recent AI-driven equity rally, with some analysts suggesting speculative capital is shifting into AI stocks. Nevertheless, substantial ETF and stablecoin inflows persist, supporting a constructive outlook for crypto’s medium-term recovery. A positive outcome in Thursday’s CLARITY Act hearing could further boost the market. Prediction markets currently indicate an 85% likelihood of Bitcoin rising to $84,000 rather than falling to $55,000, with the next STRC ex-dividend event seen as a near-term test.
