On Tuesday morning, a bullish trend returned after Bitcoin experienced a drastic decline. The result of the ceasefire negotiations and the peace effort between Iran and the United States, which was announced by the Vice President of the United States, as well as statements of bluffs and military threats made by President Trump, were the causes of the plunge in Bitcoin's value.
Bitcoin strengthened. What about other crypto assets?
Despite having dropped quite drastically, on Tuesday morning, the price of Bitcoin (BTC) corrected to $74,436. According to data from CoinDesk, Ether (ETH), Solana (SOL), and XRP (XRP) were also in the green zone, although they were reaching smaller gains than BTC. In line with the surge in Bitcoin, crypto-related stocks also jumped higher. This increase was led by Circle (CRCL) with an 11% increase, Gemini (GEMI) up 9%, while MARA Holdings (MARA) and Bullish (BLSH) rose slightly above 8%. In traditional stocks, the Nasdaq strengthen 1,2%. Contrarily, WTI crude oil prices have now fallen to the $98 per barrel level after breaking the $105 mark on Sunday.
Bitcoin (BTC) strengthened again over the past 24 hours. What actually happened?
The surge in Bitcoin's price occurred due to the purchase of 13,927 BTC, which is worth $1 billion, by Michael Saylor's Strategy (MSRT). Interestingly, this purchase did not use common stock. Saylor issues STRC Preferred Stock, which is a special stock with characteristics similar to a combination of stocks and bonds. Shareholders do not have the same rights as regular shareholders, but they get higher priority for profit distribution. Michael Saylor's Strategy promises investors who want to buy STRC preferred shares an interest rate of 11,5%.
Activity on STRC gives a signal to the market that there is a possibility of another large-scale purchase. On Monday, the trading volume of STRC set a record of $770 million with the stock price's nominal value remaining steady. This indicates that Strategy will release additional shares, thus allowing large-scale Bitcoin (BTC) purchases.
