Bitcoin Rally Loses Steam After Strategy Signals Potential Sell-Off
Bitcoin weakened from a three-month high on Thursday (May 7), after the latest rally was halted by a signal from Strategy—the largest corporate Bitcoin holder—that it was open to selling some of its holdings. Meanwhile, sentiment in the crypto and risk asset markets remains relatively positive, supported by hopes for a de-escalation between the US and Iran.
In the latest price update, Bitcoin (BTC) was around US$80,185, down around 1.8% today (intraday high US$81,823; low US$80,083). The previous rally strengthened due to a combination of bargain buying and improving risk appetite, with news of positive US-Iran negotiations also contributing to the risk-on trend.
However, this momentum is starting to run into a supply overhang from the corporate side. Strategy stated that it is considering selling some of its Bitcoin holdings, with the goal being linked to dividend payment needs—relevant given that the company's Bitcoin accumulation is financed through a combination of equity and debt issuance. The STRETCH preferred stock offering reportedly met strong demand, but also increased future dividend obligations. Chairman Michael Saylor did not specify the size of the potential sale, but stated that the company still intends to buy back Bitcoin.
From a market transmission perspective, signals of potential selling by large holders tend to limit short-term rallies because they increase the perception of additional supply when prices are near multi-month highs. Conversely, improving geopolitical sentiment typically lowers risk premiums and boosts high-beta assets like crypto, so corrections tend to be contained as long as the risk-on narrative remains dominant.
On the policy front, Coindesk reported that the White House plans to share updates on the national Bitcoin reserve "in the coming weeks," with the process of inventorying and securing the US government's Bitcoin said to take several months. The report linked this development to President Donald Trump's 2025 executive order regarding the creation of a Bitcoin reserve from confiscated crypto assets.
Altcoins also weakened. Ethereum (ETH) was at around US$2,299.84, down about 2.7% today.
Going forward, the market is likely to monitor: (1) clarity on Strategy's plans regarding sales and dividend requirements (including their impact on supply expectations), (2) the dynamics of US-Iran negotiations that shape risk sentiment, and (3) follow-up on US policy signals regarding the national Bitcoin reserve, which could potentially change the short-term narrative in the crypto market.
Source: Newsmaker.id
