Bitwise says STRC selloff signals crypto cycle nearing a bottom, not Strategy’s breaking point
Bitwise argues that the recent volatility in STRC, a Bitcoin Strategy ETF from Strategy (formerly MicroStrategy), reflects a late-cycle leverage unwind, not a failure of the firm's bitcoin strategy. The firm believes institutions are poised to replace Strategy as the biggest buyers of bitcoin.
Bitwise, a prominent crypto asset management firm, has interpreted the recent selloff in the Bitcoin Strategy ETF (STRC) — an ETF tied to holdings of Strategy (formerly MicroStrategy) — as a sign that the current crypto market cycle is nearing its bottom. The firm does not view this volatility as indicative of a breaking point for Strategy's bitcoin-focused corporate strategy, but rather as a natural part of the market's late-cycle dynamics.
According to Bitwise, the selloff in STRC is part of a broader deleveraging process, where overleveraged positions are being unwound. This phase is typically followed by institutional investors stepping in to buy bitcoin at lower prices. Bitwise noted that institutions have historically been significant buyers of bitcoin, and the firm expects them to replace Strategy as the biggest buyers in this cycle.
For everyday investors, this analysis suggests that the current market conditions might present a buying opportunity. As institutions prepare to enter the market, the price of bitcoin could stabilize and potentially rise. However, investors should be cautious and conduct their own research before making any investment decisions.
Looking ahead, investors should watch for signs of institutional buying, such as increased inflows into spot bitcoin ETFs and other institutional-grade products. This could signal the start of a new bullish phase in the crypto market. Read more → https://www.coindesk.com/markets/2026/07/02/bitwise-says-strc-selloff-signals-crypto-cycle-nearing-a-bottom-not-strategy-s-breaking-point