"BTC started trading downwards once news came out of Japan from Katayama that rate cuts were on the table on Sunday night. Fears of the infamous yen carry trade unwinding once again spooked markets at futures open. An unfortunate quality of being one of the most expressive risk assets humans have ever created, is the high levels of volatility and violent moves (in either direction)."
"With Strategy (NASDAQ: MSTR) CEO Phong Le acknowledging that there are scenarios where Strategy would in fact sell bitcoin, the market became further fearful on Monday. Le mentioned possibilities of bitcoin being sold if mNAV drops below 1, or if they are unable to raise any further capital through their creative financing mechanisms. This news combined with the MSCI wanting to delist Strategy puts Saylor in not the most favorable of positions."
Bitcoin reclaimed the $91k level then slid over the weekend, losing gains on Monday and falling to lows just below $84k. Rate-cut comments from Katayama in Japan revived yen carry trade unwind fears and prompted futures selling and renewed BTC volatility. Prices recovered modestly to just above $88k by Tuesday morning. MicroStrategy (NASDAQ: MSTR) CEO Phong Le said scenarios exist where the firm would sell bitcoin, including mNAV falling below 1 or inability to raise more capital, intensifying investor concern. MSCI’s potential delisting and MicroStrategy’s recent purchase of 130 BTC add complexity.
Read at 24/7 Wall St.
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