Bitcoin briefly fell below the $80,000 level this week, but one analyst believes the correction will likely be temporary. He pointed to a structural buying mechanism tied to Strategy’s preferred stock, which has helped fuel mid-month Bitcoin rallies over the past three months.
Bitcoin is currently trading around $79,680, down roughly 0.5% over the past 24 hours according to CoinGecko data, after touching an intraday low of $78,795.
The decline comes as U.S. spot Bitcoin ETFs recorded $630.4 million in net outflows on May 13, marking the largest single-day outflow in the past three months.
“This dip is likely to be short-lived,” said Andri Fauzan Adziima, Head of Research at Bitrue Research Institute, in an interview with Decrypt.
According to him, the market recently experienced a classic liquidity sweep around the $78,000–$79,000 support zone before rebounding above the monthly 50-day moving average and reclaiming the $80,000 level. He also noted that on-chain data shows large wallets, or whales, are still aggressively accumulating Bitcoin.
Another factor supporting Bitcoin behind the scenes is STRC, the preferred stock issued by Bitcoin treasury company Strategy.
A Tuesday report from K33 Research stated that STRC has contributed to mid-month Bitcoin rallies for three consecutive months. Through this instrument, Strategy increased its Bitcoin purchases from 4,467 BTC in January to 22,131 BTC in March, and nearly 46,872 BTC in April.
This Friday also marks the next STRC ex-dividend date, which K33 Research Head of Research Vetle Lund believes could trigger another mid-month rally.
The mechanism works as follows: STRC pays dividends at the end of each month, while investors must own the stock before the ex-dividend date on the 15th to qualify for payouts.
This encourages investors to buy shares ahead of the date, pushing the stock price closer to its $100 par value. That, in turn, allows Strategy to issue more shares and use the proceeds to purchase additional Bitcoin.
