BTC climbed to its highest levels in almost a month, triggering a wave of short liquidations. Over the past 24 hours, positions worth around $530 million have been liquidated across the market. A significant share of this came from BTC and ETH shorts. Against this backdrop, Bitcoin gained around 5%, while Ethereum rose by more than 7%. XRP increased by roughly 1.2% over the same period to $1.34, while Solana added 2.3%, climbing to around $83.
STRC as a New Source of Market Pressure
One of the key catalysts behind the latest upward impulse was likely Strategy. At the center of attention is its perpetual preferred stock, Stretch (STRC), which posted a record trading volume of more than $1 billion on Monday.
The company reported the day before that it had invested $1 billion in Bitcoin over the past week. In addition, in just the latest trading session, the Strategy-related structure raised another approximately $600 million through STRC for future BTC purchases. According to market participants, those funds could be deployed into Bitcoin either almost immediately or during the next trading session.
STRC differs significantly from the regular MSTR stock. This instrument is aimed not at investors seeking maximum leverage to Bitcoin’s upside, but rather at those who value regular income. Stretch is a preferred stock with a monthly dividend payout, and its current annualized yield stands at around 11.5%.
At the same time, the product is designed so that its price remains as close as possible to its $100 par value. To achieve this, Strategy regularly adjusts the dividend amount.
As soon as STRC trades at or above par, the company is able to issue new shares into the market. The funds raised come in US dollars and can then be converted into Bitcoin. This creates additional pressure in the spot market and strengthens demand. Given that today is the final trading day before the dividend payout, STRC trading volume may once again set a new record.
The Market Is Hoping for New Negotiations
Additional support for the crypto market is coming from expectations of a possible diplomatic easing in the conflict between the United States and Iran. According to media reports, a new round of talks could take place as early as Thursday. Donald Trump reportedly said that “the other side contacted us” and that “they want to reach an agreement.”
This is an important signal for the market: any signs of declining geopolitical tension typically increase appetite for risk assets, which in turn provides additional support for cryptocurrencies.
What the Market Is Watching Next
On Tuesday, investor attention is also focused on new US producer price data. On Thursday, market participants will be watching the release of March inflation data in Europe, as well as US initial jobless claims.
In addition, investors are beginning to factor in the start of the corporate earnings season. Taken together, all of this could increase volatility both in traditional markets and in cryptocurrencies.
Conclusion: the current rise in Bitcoin is being supported by two factors at once — structural demand from Strategy through the STRC mechanism, and improved market sentiment amid possible diplomatic progress between the United States and Iran. If both drivers remain in place, BTC could continue moving higher, although the market remains sensitive to macroeconomic data and geopolitical headlines.
Bitcoin’s latest rally is being driven by a powerful mix of structural demand and improving market sentiment. Strategy’s STRC mechanism is creating fresh buying pressure for BTC, while hopes for renewed US-Iran negotiations are supporting a broader risk-on mood across financial markets. If both drivers remain intact, Bitcoin may continue pushing higher, although macro data and geopolitical headlines still pose near-term volatility risks.
