Bitcoin Price Analysis: BTC Subdued As Risk-Off Sentiment Takes Hold
Bitcoin (BTC) registered a marginal decline during the ongoing session as it remained pinned under the 20-day SMA. The flagship cryptocurrency has started the new month shrouded in uncertainty, with market watchers unsure where the market will head.
BTC had plunged to an intraday low of $103,734 on Monday before rebounding to reclaim $105,000 and move to its current level of $105,980.
Strategy To Raise $250M To Buy More Bitcoin
Michael Saylor’s Strategy plans to raise $250 million through an initial public offering of a new class of perpetual preferred stock to fund additional Bitcoin purchases. The company will issue 2.5 million shares of its 10% Series A Perpetual Stride Preferred Stock at $100 per share. Proceeds from the raise will be used to fund future Bitcoin purchases and provide working capital. Perpetual preferred stocks pay fixed dividends indefinitely with no maturity date and typically get priority over common stock in payouts. Strategy released a statement announcing its decision,
“Strategy (Nasdaq: MSTR; STRK; STRF) today announced that subject to market and other conditions, it intends to conduct an initial public offering registered under the Securities Act of 1933, as amended (the Securities Act), of 2,500,000 shares of Strategy’s 10.00% Series A Perpetual Stride Preferred Stock (STRD). Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital.”
The offering gives Strategy a new avenue to raise funds for Bitcoin purchases. The company primarily funded Bitcoin acquisitions through common stock and convertible note offerings. Strategy has become the world’s largest corporate Bitcoin holder with 580,955 BTC worth over $67.7 billion. The $250 million from its latest offering will allow the firm to purchase 2,351.8 BTC at current prices.
21Shares Announces Share Split For Spot Bitcoin ETF
21Shares has announced a 3-for-1 share split for its flagship ARK 21Shares spot Bitcoin ETF, ARKB. The move aims to make the fund more accessible to retail investors and will take effect at market opening on June 16. The split will triple the number of shares available and reduce the price per share without impacting the fund’s value. ARKB will continue to trade under its current sticker.
“21Shares US LLC (21Shares), an affiliate of 21Shares AG, one of the world’s largest issuers of crypto exchange-traded funds (ETFs), today announced a 3-for-1 share split for its flagship fund ARK 21Shares Bitcoin ETF (ARKB). This move is designed to make shares more accessible to a broader base of investors and enhance trading efficiency. The share split is expected to be effective at market open on June 16, 2025.”
The fund is a physically backed spot Bitcoin ETF tracking the New York Variant of the Chicago Mercantile Exchange CF Bitcoin Reference Data, providing investors with direct access to Bitcoin in a regulated investment environment.
Matador Technologies Listed On The Frankfurt Stock Exchange
Bitcoin-focused Matador Technologies has announced it will begin trading on the Frankfurt Stock Exchange. The listing adds a key European listing to its existing US and Canadian markets. The listing aligns with Matador’s goal of offering round-the-clock trading access to its shares, modeled on Bitcoin’s 24/7 trading schedule. Matador Technologies CEO Deven Soni stated,
“This listing completes a key part of our global capital markets strategy. It enables European investors to participate more easily in our growth story.”
Matador has branded itself as a Bitcoin ecosystem company focusing on building a Bitcoin-backed treasury and fintech platform.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is marginally up during the ongoing session as it struggles to cross the 20-day SMA. The flagship cryptocurrency faces rejection around the $105,000 level, with subdued price action indicating risk-off sentiment. Markets are jittery thanks to renewed trade tensions between the US and China, geopolitical tensions, and continuous outflows from spot Bitcoin ETFs. Risk-on sentiment took a beating as tensions escalated in the Middle East after Israeli soldiers opened fire on people who strayed from a designated route to a food distribution site. Apart from escalating tensions in the Middle East, the Russia-Ukraine war has also seen an increase in hostilities.
Institutional demand has also weakened, with data from SoSoValue highlighting outflows of $267 million from spot Bitcoin ETFs on Monday. While the outflows are relatively lower compared to February, an increase could lead to a substantial decline in BTC’s price. Despite trading in positive territory, markets remain cautious, expecting more geopolitical volatility. According to the Kobeissi Letter, markets are pricing out the Ukraine-Russia peace deal, stating,
“This is effectively the market pricing out the Russia-Ukraine peace deal that President Trump has been working on for 3+ months. However, we have yet to receive a single comment from the US or President Trump. Clearly, something is going on behind the scenes. How will the US respond?”
BTC registered a sharp drop on Friday (May 23), falling nearly 4% to $107,356. Despite overwhelming selling pressure, BTC recovered over the weekend, rising 0.46% on Saturday and 1.16% on Sunday to reclaim $109,000 and settle at $109,103. The price continued to push higher on Monday, registering a marginal increase, but was back in the red on Tuesday, dropping 0.46% to $108,954. Sellers retained control on Wednesday as BTC fell 1.03% to $107,834.
Source: TradingView
Selling pressure intensified on Thursday as BTC fell over 2%, slipping below the 20-day SMA and settling at $105,662. Price action remained bearish on Friday as BTC fell 1.51%, falling below $105,000 and settling at $104,067. BTC recovered over the weekend, rising 0.69% on Saturday and nearly 1% on Sunday to reclaim $105,000 and settle at $105,775. BTC fell to an intraday low of $103,734 on Monday as selling pressure returned. However, it rebounded from this level to register a marginal increase and settle at $105,903. The current session sees BTC up almost 1%, trading around $106,743, as buyers look to build momentum and push towards $110,000.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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