Bitcoin has broken a six-month trend of weakness following the ex-dividend date for Strategy’s (MSTR) perpetual preferred stock, STRC, as it trades higher amid a short squeeze and strong U.S. demand. One week after the April 15 ex-dividend date, Bitcoin’s price rose from around $75,000, defying the typical post-payout decline seen in dividend-paying securities. The rise is attributed to negative funding rates that have triggered short covering, alongside a persistent premium on Coinbase, indicating robust spot demand from U.S. investors.
The recovery in STRC, which is currently trading at $99.47, is crucial for Strategy, as it allows the company to utilize its at-the-market program to fund additional Bitcoin purchases. With shares up over 9% to $178, the firm recently disclosed a significant purchase of 34,164 BTC, reinforcing its position as the largest publicly traded holder of Bitcoin.
Market professionals should note that the current dynamics, including negative funding rates and strong demand, could sustain upward momentum in Bitcoin prices, potentially influencing trading strategies and portfolio allocations in the cryptocurrency space.
Source: coindesk.com