Fundstrat Warns Bitcoin Could Slip to $60K on Demand 'Air Pocket'

Bitcoin’s latest push higher looks like it could stumble as demand dries up.

That’s the warning now coming from Fundstrat's Head of Digital Asset Strategy Sean Farrell, who says the recent rally in Bitcoin may have been artificially boosted by a surge in demand tied to Strategy’s dividend-driven buying machine — flows that could now be fading.

“My base case is that we probably revisit the lower end of this range that we’ve been chopping in over the past couple of months,” Farrell told Coinage in a new interview. “And perhaps we even break that at some point.”

That range, as he clarified, could mean a move back toward the mid-$60,000s — marking a sharp pullback from recent highs near $75,000.

The key driver behind outperformance in April, Farrell says, isn't macro, regulation, or even ETFs, but rather the mechanics of Strategy’s preferred stock issuance, which has quietly become one of the largest sources of marginal demand for Bitcoin in 2026.

As investors piled into Strategy’s high-yielding instrument ahead of its ex-dividend date, the company ramped up Bitcoin purchases, likely enabling roughly $2 billion worth of Bitcoin purchasing firepower this week. That created a powerful, but temporary, bid under the market.

But now, it seems as though that demand has been tapped, with no new issuances since the ex-dividend date hit on Tuesday.

“That leaves a bit of an air pocket in terms of the flow dynamic here over the next few weeks,” Farrell said. In other words: the same force that helped push Bitcoin higher could now work in reverse.

“There aren’t really fundamental monetary or fiscal tailwinds for Bitcoin here near term,” he said. “There’s also no identifiable idiosyncratic tailwinds.”

That stands in contrast to earlier phases of the cycle, where catalysts like ETF approvals and election-driven narratives helped fuel sustained upside. Today, with volatility cooling, credit spreads tightening, and liquidity trends still “neutral to negative,” the setup looks less compelling.

Still, the longer-term picture isn’t entirely broken. Farrell noted that over extended timeframes, Bitcoin and other major crypto assets are approaching value territory, just not necessarily in the short term.

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