Bitcoin positions itself for a rally above $80,000 after Strategy's $2 billion BTC buy, crumbling investor confidence in the US Treasury and a potential US-Iran deal. Bitcoin (BTC) faced a rejection following a failed attempt to break above $82,000 on Thursday. A subsequent retest of the $76,000 level on Monday triggered $400 million in liquidations for bullish Bitcoin positions over a four-day period. While traders’ confidence took a hit from the 7% price decline, the prospects for recovering the $80,000 mark remain valid. Bitcoin reserve accumulation by Strategy (MSTR US). Strategy US-listed Strategy (MSTR US) completed the acquisition of $2 billion in BTC over the past week alone. Spearheaded by Michael Saylor, the company continues to surprise investors by finding innovative ways to reduce the cost of capital and raise cash through equity issuance, whether via MSTR common stock or STRC preferred equity. More importantly, Strategy proved the company can also capitalize on a weaker market by repurchasing $1.5 billion of its debt due in 2029. Retiring some of its senior convertible notes reduces potential future dilution for current MSTR holders. This move clears the runway for new share issuance and additional Bitcoin purchases. S&P 500 index (left) vs. US 10-year Treasury yield (right). TradingView From a macroeconomic perspective, the odds of a sustainable bullish momentum for Bitcoin improved as traders demanded higher returns to hold government bonds. Yields on the 10-year Treasury jumped to 4.60%, hitting their highest level in 16 months. Investors are gradually realizing the heavy burden on the US Treasury, especially with $2 trillion in long-term debt maturing in 2026. The US Federal Reserve will likely need to continue accumulating bonds and Treasurys, a move that potentially weakens the US dollar. Typically, investors seek shelter in scarce assets when they lose confidence in the central bank's ability to navigate a crisis without d