Bitcoin Surges Past $77K as Strategy's Treasury Reaches Profit
Bitcoin has broken through several key resistance levels and reached its highest price since May 26, topping $77,000. This milestone is significant for Strategy, a corporate treasury company with the largest holdings of Bitcoin among all companies. The cost basis for Strategy's BTC holdings is currently at $75,385, which means that they are now in profit.
Data from TradingView shows new local highs above $77,400 prior to the week's final Wall Street open. This surge has left some analysts wondering if it will lead to further gains or a retracement. Independent crypto analyst William Clemente suggested that Strategy's fears about their Bitcoin investment thesis have been alleviated, at least for now.
Strategy had previously sold 1,690 BTC between Aug. 3 and Aug. 9 to repurchase 1.15 million shares of its STRC preferred stock for $108.6 million. This move was seen as a concern for the long-term viability of their Bitcoin investment thesis. However, with the current price surge, it seems that Strategy's strategy has been vindicated.
The new safety net forming below $70,000 is also worth noting. Analysis from onchain analytics platform Glassnode revealed that 3.44 million BTC now have an onchain cost basis between $58,000 and $67,000. This cluster of coins could serve as a key support zone in case of a retracement.