Key Takeaways Bitwise CIO says Strategy’s volatility reflects a typical late-cycle leverage unwind, not structural weakness in bitcoin demand. He argues the current phase is excess leverage removal, historically a precursor to new bull markets. The executive cites fear, valuation discounts, and negative funding rates as bottoming signals. STRC and Late-Cycle Stress Bitwise Chief Investment Officer Matt Hougan explained in a July 1 analysis that STRC, Strategy’s perpetual preferred equity instrument designed to offer high yield while trading near a fixed value, illustrates late-cycle leverage dynamics rather than systemic failure. The key issue is capital quality, he emphasized. STRC attracted …