Bitcoin Price Recovers as Trump Expresses Strong Crypto Support Following Strategy’s Bitcoin Liquidation]

Bitcoin Price Recovers as Trump Expresses Strong Crypto Support Following Strategy’s Bitcoin Liquidation]

Bitcoin climbed Monday after President Donald Trump signaled his support for cryptocurrency, reversing earlier losses triggered by Strategy’s second round of bitcoin sales this year. The cryptocurrency was last trading at $63,853.85, gaining 1.8% on the day after previously dipping below $60,000.

Trump’s comments came during a news conference where he responded to questions about whether bitcoin might be included in Trump Accounts, the recently launched tax-advantaged savings vehicles for children. “Well … I’ve become a big crypto guy,” he said.

The president’s remarks provided a boost to crypto markets, helping to offset concerns stemming from Strategy’s announced bitcoin sales. The company disclosed in a regulatory filing that it sold approximately $216 million worth of bitcoin between June 29-30 and July 1-5, marking only its second sale since 2022.

These transactions represent a notable shift from Strategy’s previous stance under bitcoin advocate Michael Saylor, who had publicly committed to never selling the company’s bitcoin holdings. The sales have dealt a significant blow to market sentiment, according to analysts at Barclays.

“Strategy’s entire investment thesis was built on a public promise never to sell,” Barclays analyst Ajay Rajadhyaksha noted. “When they sold — even a minuscule amount — and then announced a new policy framework allowing further sales for ‘capital allocation purposes,’ it was a significant hit to sentiment.”

Strategy’s holdings now total 843,775 bitcoin valued at approximately $52.1 billion, with an average cost basis of $75,476 per token. The company first signaled its pivot toward allowing sales in May, reporting initial small-scale liquidations in June.

While Strategy’s common shares rose 1% Monday, its preferred stock (STRC) gained nearly 3%, though it remains below its $100 par value. Cantor analyst Ramsey El-Assal views the bitcoin sales as a strategic move to support preferred stock performance rather than a reflection of diminished conviction in bitcoin.

“We fully expect the company to do whatever it takes to lift STRC to par, and we believe the Street should expect frequent, periodic actions,” El-Assal stated. He noted that Strategy must balance competing interests among preferred shareholders, common shareholders, and bitcoin investors — a challenge that requires careful navigation given the interconnected nature of the securities.

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