Bitcoin Slides on Strategy STRC Record-Low; Liquidations Top $1.44B

Published: 2026-06-25 16:50:42 |

Bitcoin fell further after Strategy’s preferred stock STRC hit another record low, widening the disconnect from its $100 par value. Stretch (STRC) dropped about 8% to $74.13 shortly after the U.S. market opened, now trading more than 25% below $100. BTC also weakened, dipping to around $58,188 before rebounding to about $59,273 (roughly -3.3% on the day), following its drop to a 21-month low on Wednesday. The sell-off intensified liquidations across crypto markets: CoinGlass data shows more than $1.44 billion liquidated over 24 hours, led by long-position liquidations (~$1.2B). Bitcoin accounted for about $658 million of total liquidations. Strategy’s stock has been pressured for weeks, with analysts focusing on the company’s USD Reserve used to support dividends and manage debt. JPMorgan and CryptoQuant have argued Strategy must rebuild reserves to sustain STRC credibility; CryptoQuant went as far as saying Strategy should stop buying Bitcoin immediately. Strategy has tried to rebuild cash by issuing common shares, but this may reduce Bitcoin owned per share. At current levels, Strategy holds about 847,363 BTC, estimated around $50B—roughly $14B underwater—highlighting downside risk if Bitcoin remains weak.

Bearish

This news is bearish for traders because it links Bitcoin weakness to negative leverage/financing dynamics from Strategy’s STRC drawdown. STRC trading far below its $100 par value signals stress in the income product, while the market response—over $1.44B in liquidations with BTC taking ~$658M—shows aggressive forced selling. Historically, when liquidations spike during sustained downtrends (e.g., prior multi-week BTC selloffs that triggered long squeezes in reverse), price often suffers from momentum persistence: more risk-off positioning, wider spreads, and a higher probability of retests of recent lows. Short-term, the immediate implication is heightened volatility and continued downside pressure if BTC remains near the 21-month low area and long liquidation flow continues. Long-term, the focus on Strategy’s USD Reserve and reserve-rebuilding requirements can influence sentiment around BTC exposure vehicles: if investors doubt dividend sustainability, it can suppress demand and keep a ceiling on rebounds. While a minor bounce occurred to ~$59.3K, the overall setup (record-low STRC + liquidation wave) argues against a quick normalization.