Strategy just dropped a signal that Bitcoin’s price is about to rip to $120,000, analyst says

Michael Saylor just provided the biggest sign that Bitcoin is about to skyrocket to $120,000.

That’s according to Bitcoin analyst James Check, who said that the fact that Saylor’s new preferred stock instruments are up as high as 15%, adds a “critical signal” that the top cryptocurrency’s price is about to rip.

“I suspect it takes us to $120,000 quickly,” Check wrote in his latest newsletter Checkonchain, saying this is the kind of behaviour that often happens before some big price movements.

His comments caps a week where analysts have flooded the interwebs with bullish predictions that Bitcoin can surge as high as $136,000 in July.

The reasons for the optimism? Easing tension in the Middle East, the expectations that the US government will unleash a wave of liquidity, and US President Donald Trump’s lasting support of the industry.

Record

Check also argued that onchain data supports that Bitcoin is about to surge.

Implied volatility in options markets is near record lows, which can be a prelude to sharp moves, he said.

Short interest is building in futures markets, raising the risk of a squeeze. Monthly stablecoin inflows are ranging between $4 billion and $6 billion, said Check.

Meanwhile, the “Realised Cap” — a measure of actual capital stored in Bitcoin — is racing toward $1 trillion. It suggests that big money is quietly buying, Check said.

Risk and reward

The surge of Saylor’s preferred stock trio is part of that trend, Check said.

Saylor announced his three preferred stock offerings this year.

While all three shares have surged, Check said that it was particularly notable that STRK is leading the rally. It is up 15% in the past week.

Check said it was notable because it pays a steady yield to investors and also converts into MicroStrategy stock if shares explode higher. The fact that it’s soaring shows that traders want exposure to Strategy stocks — and by extension, Bitcoin gains, Check said.

Strategy, formerly known as MicroStrategy, has been a relentless buyer of Bitcoin. The company has accumulated upwards of 597,000 Bitcoin worth about $63 billion, according to Bitcointreasuries.net.

While most of that came from Saylor’s unique convertible bond scheme, interest for his newest stock offerings has skyrocketed.

‘Complete financial gibberish’

Still, not everyone is convinced about Strategy’s business plan.

Renowned short seller Jim Chanos — famous for calling the Enron fraud in 2001 — has been actively targeting the premium between Strategy stock and the value of its underlying Bitcoin holdings.

In fact, Chanos has called Saylor’s latest bout of financial engineering, “complete financial gibberish,” and said Strategy investors must be “crazy.”

Pedro Solimano is a markets correspondent based in Buenos Aires. Got a tip? Email him at psolimano@dlnews.com.