Bitwise CIO Reveals the Hidden Force Behind Bitcoin’s 20% Rebound
Bitcoin (BTC) has remained comparatively resilient amid ongoing geopolitical tensions, with its value broadly trending larger since late February.
According to Bitwise CIO Matt Hougan, MicroStrategy has emerged as a standout contributor to the latest rally resulting from its continued large-scale Bitcoin purchases.
MicroStrategy’s STRC Shares Are the Real Engine Behind Bitcoin’s Rally
In a memo revealed Tuesday, Hougan acknowledged that a number of forces have contributed to Bitcoin’s latest climb. He pointed to strong ETF inflows of $3.8 billion since March 1 and a wave of recent accumulation from long-term holders.
Still, he argued that Strategy has “been the single greatest issue.” The agency snapped up $7.2 billion in Bitcoin over the last eight weeks.
“Bitcoin is up roughly 20% from its February lows, buying and selling round $76,000. Everyone is questioning if the rally can proceed. To a big diploma, the reply lies with Strategy,” the govt wrote.
The agency now holds 818,334 BTC, sitting 181,666 coins short of 1 million. Galaxy Research head Alex Thorn projects that MicroStrategy might overtake Satoshi Nakamoto’s estimated 1.1 million BTC stash inside two years if the present tempo continues.
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Why Bitwise CIO Thinks Strategy’s STRC Buying Is Far From Over
Hougan identified that MicroStrategy has bankrolled this buying spree by promoting STRC. BeInCrypto also highlighted in a latest report that, to date in 2026, Strategy’s STRC has financed 10x extra BTC shopping for than the complete US spot ETF market mixed.
Hougan expects Strategy to maintain leaning on STRC as a funding automobile. He argued that STRC’s 11.5% payout looks compelling in a market the place junk bonds supply below 7%, and capital is rotating out of private credit. With a Bitcoin cushion exceeding $40 billion, he sees loads of urge for food for extra.
“The quantity I’d watch is Strategy’s whole obligations (debt + most popular fairness) as a share of its bitcoin holdings. Today, that sits at 33%: $21 billion in obligations towards $63 billion in bitcoin. If that quantity pushes towards 50%, I believe traders will begin asking questions. But at at the moment’s bitcoin costs, that also provides room for an additional $10-$15 billion in STRC issuance. And extra if bitcoin rallies,” Hougan added. “I don’t suppose we’re carried out STRC-ing in any respect.”
That mentioned, STRC hasn’t escaped scrutiny. Economist Peter Schiff has been among the critics, warning that Strategy’s Bitcoin-backed yield mannequin is on a path towards a loss of life spiral.
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The publish Bitwise CIO Reveals the Hidden Force Behind Bitcoin’s 20% Rebound appeared first on BeInCrypto.
