The cryptocurrency market posted a broad recovery over the past 24 hours, with total market capitalization rising about 4.6% to roughly $2.35 trillion. Bitcoin led the move, climbing 4.57% to trade near $68,578. Analysts say the rally was also supported by improved macro sentiment following President Donald Trump’s recent State of the Union address.
Amid Bitcoin’s volatility, Strategy, the firm led by Bitcoin advocate Michael Saylor, has become one of the most shorted large-cap stocks in the United States.
Among companies with market capitalizations above $25 billion, Strategy ranks near the top for short interest. Roughly 14% of its market value, about $6 billion, based on a $42 billion valuation, has been sold short.
Short sellers borrow shares and sell them in anticipation that prices will fall. In Strategy’s case, that means about $14 out of every $100 of its stock has been wagered against by bearish investors.
currently holds 717,722 BTC, valued at approximately $47 billion. The company disclosed on February 23 that it purchased an additional 592 BTC for about $39.8 million at an average price of $67,286 per coin.
However, its average acquisition cost across all holdings stands near $76,020 per Bitcoin. With shares now trading around $135, down 60% over the past six months, the stock has lost much of the premium investors previously paid for leveraged Bitcoin exposure.
Not everyone is convinced the rebound will last. Peter Schiff recently that Bitcoin holders have “another opportunity to sell a rally” and suggested buying gold instead.
Meanwhile, Strategy CEO Phong Le expressed long-term confidence, saying that even if Bitcoin rises to $1 million and later drops to $750,000, critics would likely call it the end again, but he would urge investors to stay patient.
From a technical perspective, Bitcoin now faces an important test. Holding above $67,500 could open the path toward $78,840. On the other hand, failing to maintain support around $64,000 could increase the risk of another pullback toward $60,074.
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