Bitcoin Market Stabilized as Strategy Adopts Dual Reserve Model with USD Buffer and Hedging, CryptoQuant Says

CryptoQuant’s latest assessment suggests that Strategy recognizes a non-zero risk of a meaningful Bitcoin pullback. The introduction of a 24-month USD buffer signals a view that Bitcoin could trade sideways or retreat over an extended horizon, with future appetite for stock financing potentially muted.

Central to the note is the Dual Reserve Model, maintaining both USD and Bitcoin reserves. CryptoQuant notes this structure lowers the probability of forced sales during downturns, while signaling a strategic pivot away from the prior accumulation path that relied on stock issuances to fund purchases.

Although reduced marginal buying pressure may weigh on near-term momentum, the enhanced hedging and liquidity toolkit offers a path to greater long-term market stability. Management now treats Bitcoin exposure as a managed asset, adopting cash buffers, hedges, and selective liquidation to protect reserves in times of stress.