Strategy builds $1.44B reserve as Bitcoin enters deeper bear phase
Strategy has shifted into defensive mode, building a massive $1.44 billion fiat reserve designed to sustain operations through a potential multi-year market downturn. The new buffer reflects growing concerns that Bitcoin’s weakened momentum may signal an extended period of sideways movement or continued decline.A 24-month liquidity cushion for a bearish environment
According to internal planning metrics, the firm’s reserve is structured to provide up to two years of operational stability without relying on asset sales during unfavorable market conditions. This approach highlights the company’s expectation that volatility and compressed liquidity could remain dominant themes well into 2025.CryptoQuant’s Bull Score—an indicator historically aligned with market momentum—has fallen to zero for the first time since January 2022. Analysts interpret this as a strong signal that sentiment has shifted decisively toward a bear phase, with reduced inflows and growing caution among both retail and institutional participants.
Analysts forecast a tight Bitcoin trading range
Julio Moreno, Head of Research at CryptoQuant, stated that Bitcoin is likely to trade within the $55,000–$70,000 corridor throughout the next year if current macro pressures persist. While these levels remain historically elevated, they suggest restricted upside potential and limited appetite for aggressive accumulation.Moreno also noted that diminished liquidity across derivatives and spot markets continues to weigh on confidence. With global risk sentiment weakening, defensive capital management strategies are becoming increasingly common among major market participants.
Does the reserve strengthen resilience or weaken demand?
Strategy’s new reserve significantly reduces the likelihood of forced BTC liquidations under stress. However, analysts caution that this shift may also weaken underlying demand for Bitcoin, as capital that might otherwise support accumulation is instead being allocated to fiat-based risk buffers.The company’s CFO emphasized that the reserve is not a retreat from the digital asset ecosystem, but a necessary adjustment to ensure liquidity stability. By maintaining cash reserves rather than relying on leverage or speculative inflows, Strategy aims to weather prolonged uncertainty without compromising long-term initiatives.
A strategic move for a new market cycle
With macro indicators deteriorating and sector-wide sentiment cooling, Strategy’s preparation signals a broader shift across the industry. Firms are prioritizing liquidity, durability and operational stability over short-term growth tactics. Whether this marks the beginning of a full crypto winter or a consolidation phase remains to be seen, but Strategy’s stance reflects a cautious, data-driven outlook on the year ahead.Editorial Team - CoinBotLab
🔵 Bitcoin Mix — Anonymous BTC Mixing Since 2017
🌐 Official Website
🧅 TOR Mirror
✉️ [email protected]
No logs • SegWit/bech32 • Instant payouts • Dynamic fees
TOR access is recommended for maximum anonymity.
🌐 Official Website
🧅 TOR Mirror
✉️ [email protected]
No logs • SegWit/bech32 • Instant payouts • Dynamic fees
TOR access is recommended for maximum anonymity.