Bitcoin price remains under pressure due to possible selling wolf

The Bitcoin price is struggling around $65.000 while analysts at QCP signal a potential problem. Strategy, which is investing heavily in Bitcoin, may have to sell more of its crypto holdings to meet dividend payments to shareholders. This scenario could put additional pressure on the price in the coming months.

Bitcoin is available at OKX and Bybit.

Strategy in a tight spot

Strategy has firmly bet on Bitcoin as an investment strategy. The company bought back $1.5 billion worth of 2029 convertible bonds and raised around $200 million through equity offerings. This money largely goes towards Bitcoin purchases. However, dividend payments to shareholders are a growing problem. QCP calculates that Strategy has roughly 7.5 months of cash position left to meet these obligations.

When that period ends and the cash dries up, Strategy could be forced to sell Bitcoin to pay dividends. This would run counter to the current buying strategy and market sentiment.

Macro optimism does not hold

QCP points out that geopolitical tensions are easing. The memorandum of understanding between the US and Iran reduces concerns about energy supplies and oil disruptions. Despite this optimistic macro climate, Bitcoin is not rising as one would expect. The selling fear surrounding Strategy appears to be a strong dampening factor.

This “overhang” effect could weigh on the market for months, even as broader market factors appear favourable. The timing of potential Bitcoin sales by Strategy partly determines what shareholders can expect from their dividend payments, but also burdens the price for other investors.

Uncertainty persists

Bitcoin’s current position around $65k, with a 1.1% decline in 24 hours, indicates that this uncertainty is already affecting the market. Bitcoin news regarding institutional investors such as Strategy is drawing increasing attention as these players become larger. It remains to be seen how Strategy will resolve its dividend issue and whether this indeed leads to massive sales.