Bitcoin is experiencing a short squeeze dynamic and consistent U.S. demand, pushing its price above $79,000.
Strategy's (MSTR) preferred stock, STRC, recently passed its ex-dividend date. This marks the first time in six months that Bitcoin has risen in the week following this event, indicating sustained strength in BTC.
Typically, STRC shares decline on their ex-dividend date, then gradually recover toward par value. This recovery is crucial as it enables Strategy, a major Bitcoin holder, to potentially issue new shares and acquire more BTC.
Strategy recently disclosed its third-largest Bitcoin purchase. The current rally is partly driven by negative perpetual futures funding rates, forcing short sellers to exit positions and accelerating gains. Additionally, a persistent Coinbase premium suggests robust U.S. spot demand. Analysts note that heavy short positioning could fuel further upside through a squeeze.