Bitcoin Price Prediction: CryptoQuant Believes Strategy Ought to Pause Its Bitcoin Purchases

Bitcoin price is trading around $62,000, with relatively no movement, but it’s doing little to mask a deeper structural prediction that is playing out publicly. CryptoQuant has issued a pointed recommendation. According to CryptoQuant analyst, Strategy, the Michael Saylor-led corporate Bitcoin buyer should stop accumulating BTC and focus on rebuilding cash reserves before its preferred stock situation turns into a full credibility crisis.

CryptoQuant’s head of research, Julio Moreno, outlined the pressure points in a Tuesday report. Strategy’s preferred stock STRC hit a record 17.5% discount to par value last week, closing at $82.50 against its $100 par. Cash reserves have dropped 38% since January 2026, partly because Strategy retired $1.5 billion in convertible notes, shrinking its dividend buffer at exactly the wrong moment.

Not just the above, Strategy’s dividend obligations have ballooned from $300 million annualized at the start of the year to $1.2 billion today, a nearly fourfold increase in under six months. STRC’s dividend coverage has collapsed from over seven years to just 14 months.

CryptoQuant Suggests Strategy Pause Bitcoin Accumulation and Prioritize Rebuilding Cash Reserves

CryptoQuant Head of Research Julio Moreno said that as Strategy continues issuing STRC preferred stock to fund Bitcoin purchases, its annualized dividend obligations have risen from… pic.twitter.com/zYzl6W9VJ5

Now, for Strategy, selling Bitcoin to close the gap isn’t going to be straightforward either. It currently carries an aggregate unrealized BTC loss of roughly $10.6 billion, with every coin purchased in 2024, 2025, and 2026 underwater at current prices.

Strategy’s bind matters to the market because it removes one of the most consistent marginal buyers from the demand side, at a moment when on-chain data already points to significant weakness across the board. Can Bitcoin survive this?

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Bitcoin’s current setup reads bearish on most metrics that matter. CryptoQuant’s cycle framework also classifies this as a bear phase, with 30-day apparent demand down approximately ‑63,000 BTC, a level consistent with distribution. The Coinbase premium remains negative, signaling U.S. spot buyers are not stepping in to absorb sell-side pressure. Bitcoin is already down 50% from its October all-time high near $126,080.

On the downside, CryptoQuant’s base case targets $55,000 as the structural bear-market bottom, or 20% below current levels. Standard Chartered has flagged a similar downside risk toward $50,000 before any sustained push toward $100,000. The $55,000–$56,000 zone represents the confluence of prior accumulation levels, and where realized-loss exhaustion has historically resolved prior cycles.

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The bull case is conditional, not dismissed. CryptoQuant’s own scenario analysis allows for a relief rally into the $71,500–$81,200 band if geopolitical and macro tensions ease materially. The “Trader Realized Price” near $81,200 capped the last bear-market rally in January 2026 and would likely act as resistance again. Current long positioning data suggests the market is not pricing a clean breakout, and it’s pricing uncertainty.

The most likely scenario is a consolidation between $60,000 and $66,000 near-term, with the $55,000 target in play if demand metrics deteriorate further. Invalidation of the bearish thesis requires a sustained close above $81,200 on volume.

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With Bitcoin price prediction tumbling and its large institutional buyers potentially sidelined and spot demand contracting, the near-term upside on BTC itself looks capped, at least until macro conditions shift. That dynamic is pushing some traders to look earlier in the risk curve, specifically at infrastructure plays building on top of Bitcoin rather than trading it outright.

Bitcoin Hyper ($HYPER) is positioning directly in that gap. It’s a Bitcoin Layer 2 protocol integrating the Solana Virtual Machine, making it, by design, the first BTC L2 capable of delivering SVM-powered smart contracts while settling on Bitcoin’s security layer.

The pitch addresses Bitcoin’s core bottlenecks: slow finality, high fees, and the absence of programmable execution. The presale has raised $33 million at a current token price of $0.0136821, with staking available during the presale phase.

Early participants also access a Decentralized Canonical Bridge for BTC transfers, the infrastructure layer that makes the SVM integration usable in practice, not just on paper.

Research Bitcoin Hyper here.

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