Bitcoin retreated slightly from its three-month high on Thursday, as its recent rally stalled after Strategy, the currency's largest institutional holder, indicated it might reduce its holdings.
However, cryptocurrency markets and broader markets remained optimistic, amid hopes of easing tensions between the United States and Iran that drove high-risk assets to strong gains.
Bitcoin fell 0.70% to $80,951.30 by 9:16 AM. The world's largest cryptocurrency had risen nearly 12% in April, benefiting from a dip buying spree and market optimism about easing tensions related to the Iran war.
Recent headlines have boosted Bitcoin's rally since the beginning of May, particularly after both the US and Iran confirmed that negotiations were progressing well. Numerous reports indicated that the two sides were close to reaching an agreement, sparking a strong rally in riskier asset markets this week.
Bitcoin's rally stalls as Strategy signals potential selling
But Bitcoin lost momentum by Wednesday, stalling near its highest level in three months, after Strategy Inc (NASDAQ:MSTR), the largest institutional holder of the currency, announced it was considering selling part of its holdings.
Strategy explained that the sales would most likely be directed towards funding dividend payouts, especially since the company financed its massive Bitcoin purchases through a combination of equity offerings and debt.
Strategy's recent STRETCH preferred share offering has also been well received, but this places further dividend obligations on the company.
CEO Michael Saylor did not specify the potential sales volume, but indicated that the company intends to buy more Bitcoin.
US Bitcoin reserves to be updated in a few weeks - Coindesk
Coindesk reported on Wednesday that the White House will announce a national Bitcoin reserve within a few weeks, citing Patrick Witt, executive director of the President’s Council of Advisors on Digital Assets.
Witt told Coindesk that federal efforts to inventory, consolidate, and secure Bitcoin held by the U.S. government have been underway in the background for months.
In 2025, President Donald Trump issued an executive order to create a national reserve of Bitcoin, using all cryptocurrencies seized by the government.
Cryptocurrency prices today: Altcoins trail Bitcoin
Prices for the broader cryptocurrency market largely stalled with Bitcoin on Thursday. Ether, the world's second-largest cryptocurrency, fell 1.60% to $2,333.41.
XRP fell by 0.80%, while BNB, Solana and Cardano rose by between 1% and 2%.
In the meme currency market, Dogecoin fell by 3.70%, while $TRUMP declined by 1.60%.
