Invest ideasNews
5 Jun 2026, 15:00
Strategy’s Leveraged Bitcoin Model Is Under Strain, Researchers Warn
Grayscale’s head of research says Strategy’s leveraged business model has come under pressure, and that pressure could make it harder for the company to keep adding Bitcoin to its holdings. Related Reading: Bitmine Seeks $300M Raise To Accelerate Ethereum Accumulation Strategy A Dividend Problem Taking Shape Zach Pandl made the assessment Thursday after Strategy sold 32 Bitcoin — a tiny slice of its 843,706 BTC stockpile — triggering a wave of selling that has knocked Bitcoin down 16% since the transaction. Strategy also offloaded $128 million in shares, and its stock has dropped nearly 13% to a two-month low of $126. At the center of the concern is STRC, a variable-rate preferred equity instrument that Strategy designed to trade at $100 per share and pay an 11.5% dividend. It is now trading around $95 — below the target price — a sign that investors are demanding a higher return than the instrument currently offers. If Strategy responds by raising the dividend to pull STRC back to par, cash obligations grow. Higher cash obligations could push the company toward selling more Bitcoin. More Bitcoin sales could weigh further on prices. Pandl put it plainly: Strategy’s levered model is under pressure, and that has increased volatility for the Bitcoin market as a whole. What Saylor’s First Sale Changed Until this week, Strategy had operated under a strict buy-and-hold approach, treating Bitcoin accumulation as a one-way strategy. The sale of 32 BTC — however small — broke that pattern and shook confidence among investors who had built a bullish thesis around the assumption that Saylor would never sell. Augustine Fan, a partner at crypto software firm SignalPlus, said markets are blaming the sales and STRC’s discount for driving the latest downturn, but added that even committed supporters are finding fewer reasons to stay structurally bullish. All eyes, Fan said, are on how Saylor manages liquidity by balancing STRC dividend payments against Bitcoin holdings. Related Reading: Bitcoin Faces Pressure As Investors Rotate Capital Into AI Buildout: Saylor A Healthier Market Without The Concentration Grayscale’s Pandl sees a broader upside to a potential shift away from concentrated, leveraged BTC holdings. Less Bitcoin sitting on the balance sheets of highly indebted companies, and more spread across diversified corporate holders, would benefit the Bitcoin ecosystem over the long run, he argued. Featured image from Unsplash, chart from TradingView
5 Jun 2026, 14:55
Crypto Market Sees $212 Million in Futures Liquidated in One Hour as Volatility Spikes
BitcoinWorld Crypto Market Sees $212 Million in Futures Liquidated in One Hour as Volatility Spikes The cryptocurrency derivatives market experienced a sharp wave of liquidations over the past hour, with over $212 million in futures positions wiped out across major exchanges. The sell-off adds to a broader 24-hour liquidation total that has now reached $1.28 billion, according to data from CoinGlass. What Triggered the Liquidations The sudden spike in liquidations appears to be driven by a combination of factors, including a rapid decline in Bitcoin and Ethereum prices, heightened market volatility, and an over-leveraged long position base. When the price of Bitcoin dropped below key support levels, automated liquidation engines on exchanges like Binance, OKX, and Bybit triggered cascading sell orders, amplifying the downward move. Long Positions Hit Hardest Data from the past hour indicates that the vast majority of liquidations were long positions — traders betting on price increases. This suggests that many market participants were caught off guard by the sudden reversal. The largest single liquidation order occurred on Binance, valued at over $10 million. Market Implications Such concentrated liquidation events often signal a short-term capitulation, but they can also lead to further volatility as forced selling feeds into price declines. For retail traders, the event underscores the risks of using high leverage in a market known for sudden price swings. Institutional players may view the flush as a potential entry point, though uncertainty remains high. Broader Context The $1.28 billion in total liquidations over the past 24 hours is among the highest single-day totals in recent months. While not as extreme as the May 2021 crash that saw over $3 billion in liquidations, it reflects persistent fragility in the derivatives market. Regulatory developments, macroeconomic pressures, and shifting sentiment around Bitcoin ETF flows have all contributed to an environment where sharp moves are becoming more frequent. Conclusion The past hour’s $212 million in liquidations is a stark reminder of the risks inherent in leveraged crypto trading. As the market digests the move, traders should monitor support and resistance levels closely, and consider reducing leverage during periods of heightened volatility. The event also highlights the importance of risk management in an asset class where 24-hour moves of 5-10% remain common. FAQs Q1: What is a futures liquidation in cryptocurrency trading? A futures liquidation occurs when a trader’s position is automatically closed by the exchange because the margin balance falls below the required maintenance level, often due to adverse price movements. Q2: Why did so many liquidations happen in one hour? Rapid price drops trigger cascading liquidations, especially when many traders are using high leverage. As prices fall, more positions hit their liquidation thresholds, creating a chain reaction that accelerates the decline. Q3: How can traders protect themselves from liquidation events? Traders can reduce risk by using lower leverage, setting stop-loss orders, diversifying positions, and monitoring market volatility indicators. Keeping sufficient margin buffers also helps avoid forced closures during sudden moves. This post Crypto Market Sees $212 Million in Futures Liquidated in One Hour as Volatility Spikes first appeared on BitcoinWorld .
5 Jun 2026, 14:53
XRP falls toward $1.10 as liquidation-driven selloff pushes token to multi-month lows
XRP lost another 5% after a high-volume breakdown overwhelmed support near $1.20, leaving traders focused on whether the latest washout marks capitulation or the start of a deeper slide.
5 Jun 2026, 14:49
Morgan Stanley predicts SpaceX valuation hitting $3.4 trillion by 2040
U.S. bank and Wall Street giant, Morgan Stanley is predicting SpaceX to hit $3.4 trillion in annual revenue by 2040, representing a 182-times increase from the reported revenue of $18.7 billion in 2025, according to a WSJ report. This projection is coming after Elon Musk’s space, satellite and rockets company kicked off the build-up to its coming IPO, with the firm looking to raise $75 billion in what would be the largest public offering in history. AI development fuels Morgan Stanley’s prediction The Morgan Stanley forecast hinges directly on the positive expectations placed on SpaceX’s artificial intelligence division, which pulled in $3.2 billion in revenue during 2025. Morgan Stanley expects this division to reach almost $190 billion by 2030 alone, marking it out as the dominant revenue hub for SpaceX. This places the division well ahead of the company’s rocket and Starlink satellite divisions, the Wall Street Journal reported . By 2030, Morgan Stanley believes SpaceX’s total revenue will get close to $330 billion, with adjusted EBITDA hitting $230 billion. The 2040 forecast includes an adjusted EBITDA estimate of $2.7 trillion. Goldman Sachs, SpaceX’s foremost investment bank and one of the leading financial heavyweights in the IPO alongside Morgan Stanley, has an even higher expectation of the AI division. Goldman Sachs sees SpaceX’s AI revenue logging almost $322 billion by 2030, with total revenue reaching $474 billion and an adjusted EBITDA of $352 billion, according to a Financial Times report cited by Reuters. SpaceX is losing money SpaceX’s current financial situation is, however, markedly far from the standing of these predictions. Elon Musk’s company accrued a net loss of $4.9 billion in 2025 after posting a $791 million profit the previous year in 2024, according to Reuters. Revenue increased 33% from $14 billion in 2024 to $18.7 billion in 2025, with the net losses suggesting heavy capital spending. This is relatively unsurprising as SpaceX has continued to scale its constellation of satellites and AI infrastructure over the past two years. SpaceX’s IPO filing with the SEC mentioned plans to sell 555.55 million shares at $135 each, which would value the company at approximately $1.75 trillion. Elon is expected to retain about 82.4% of the voting power after the Nasdaq listing. Starlink and rocket operations projections Goldman Sachs’ projections expect revenue from SpaceX’s launch operations to grow modestly, from $4.1 billion in 2025 to $8.3 billion by 2030. Starlink, which currently serves about 10.3 million subscribers across 164 countries with a constellation of more than 9,600 satellites, is predicted to generate $144 billion in revenue by 2030, making it the second most profitable division behind AI. The Procure Space ETF (UFO) has gained 137% over the past 12 months, which could point to an increased investor interest in the space sector ahead of the SpaceX listing, according to Stocktwits. SpaceX began its investor meetings on Thursday, with reports that investors from China and Hong Kong would be barred from participating in the IPO. Morgan Stanley and Goldman Sachs are both key players in the IPO’s underwriting, alongside BofA Securities, JPMorgan and Citi. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .
5 Jun 2026, 14:47
Bitcoin Crumbles Toward $60K, Strategy Sold BTC, Zcash Faces Critical Vulnerability: Weekly Crypto Recap
It was quite the week for the cryptocurrency markets, dominated to a very large extent by the bears. Here’s the breakdown. The previous weekend was quite sluggish, although BTC had already declined to $74,000 from the May top of almost $83,000. However, the worst was yet to take place. As the new business week and month began on Monday, bitcoin experienced a quick and painful decline. It first dumped toward $70,000, and even though that psychological level held the first breakdown attempt, it eventually gave in, and the landscape quickly worsened. The cryptocurrency kept losing key support levels one after the other, and each bounce-off attempt was halted in its tracks. The bears appear to be in full control, even today on Friday. Earlier today, BTC dipped below $62,000 again and slipped to $61,000. It rebounded to $63,000 within minutes, which only increased the liquidations across the board, only to be rejected again. The latest leg down transpired minutes ago when the asset slumped below $61,000 to chart a fresh four-month low. Thus, the cryptocurrency has lost well over $20,000 since its mid-May top as it now struggles to remain above the coveted $60,000 support. The weekly decline is quite obvious and striking. BTC has plummeted by 15% since this time last Friday, and by a whopping 26% monthly. Its market cap has shed over $400 billion in weeks and is down to $1.2 trillion on CG. Even its dominance over the alts took a hit , even though many have charted similar or even worse declines. Some of the notable examples include ADA, which is down by over 30% following Charles Hoskinson’s decision to take a break , and Zcash’s 41% drop after some technical vulnerabilities were uncovered earlier. Market Data Market Cap: $2.18T | 24H Vol: $138B | BTC Dominance: 55.7% BTC: $60,650 (-15.5%) | ETH: $1,600 (-17%) | XRP: $1.11 (-14%) Cryptocurrency Market Overview Weekly June 5. Source: QuantifyCrypto This Week’s Crypto Headlines You Can’t Miss Strategy Sold Bitcoin, But It’s Not What You May Think . Bitcoin’s big troubles began shortly after Strategy announced its first sale in years. Although it disposed of a very tiny portion of its BTC holdings, it still triggered a community reaction and perhaps led to a significant worsening in the overall market sentiment. Peter Schiff Warns Bitcoin Could Plunge Below $20K as Complacency Sets In . In an entirely expected comment on X, Peter Schiff took advantage of BTC’s price crash and predicted an even bigger calamity to $20,000 if the $50,000 support is lost. Strive Doubles Down on Bitcoin With $185M Buy, Holdings Near 19,000 BTC . Unlike Strategy, Strive made its first purchase in a long time, expanding its holdings to almost 19,000 BTC after a substantial $185 million accumulation of the asset. Arthur Hayes Dumps Entire Zcash (ZEC) Position After Major Flaw Emerges . Shortly after the news of Zcash’s issues went viral on X, Arthur Hayes, who had been supporting the project for a while, said he had disposed of his entire ZEC position, citing a lot of uncertainty. Cardano (ADA) Faces Make-or-Break Moment as Social Buzz and Network Activity Explode . Hoskinson’s break, combined with ADA’s massive price calamity, led to a significant increase for Cardano, with the social media activity going wild. Ethereum Crashing to 14-Month Low Is a ‘Screaming Buy-The-Dip Opportunity’ – Analyst . ETH was not spared by the overall market crash, dumping to consecutive 14-month lows at under $1,800 and then to $1,600. Some analysts, though, believe this could be a proper buy-the-dip opportunity. Charts This week, we have a chart analysis of Ethereum, Ripple, Cardano, Binance Coin, and Hyperliquid – click here for the complete price analysis . The post Bitcoin Crumbles Toward $60K, Strategy Sold BTC, Zcash Faces Critical Vulnerability: Weekly Crypto Recap appeared first on CryptoPotato .
5 Jun 2026, 14:46
Nearly $1B liquidated as crypto longs get wiped out
Long traders accounted for nearly 80% of liquidated crypto positions as Bitcoin and Ethereum led a broad market deleveraging move.
