What the data tells us

Today again we're seeing massive social volume spikes with deeply negative sentiment prints. And for the umpteenth time in a row they don't seem to bring any relief.

Some liquidations happened during the last few days, but none of those levels ended up being any meaningful support, which is likely an indication that we're not done with the sellloff yet, until something breaks for real.

Important observations

Strategy announced that they bought more than 8100 BTC last week, and over $130M worth of them came from selling STRC, which is very impressive, it's more than 3x the largest amount of preferred stock that they were able to sell previously. Despite that, STRC proceeded to depeg severely from the par value of $100 and is now trading around $94 - around the price it was when the dividend was 9% (compared to 10.5% currently). It might take many more dividend raises to bring it back to par, especially considering the falling BTC price which likely attributes to investors pricing in additional risks for Strategy.

Conclusion