💸 STRC Reclaims $100 Par
🗞️ 100% Backed in October
💰 Yield Recap
📈 Weekly Market Review

This week, a couple of things went USDh’s way.

STRC, Strategy’s preferred, returned to $100 par. Trading back around stated value lets Strategy issue new shares again instead of buying them back, while giving USDh a steadier source of STRC income with less exposure to price swings.

The October attestation is also live. USDh was 105.39% backed. The attestation marks 22 consecutive months of full collateralization, with backing assets independently verifiable. This month, part of that backing is held with Clear Street for the first time, alongside Copper.

Strategy’s preferred is back at $100 par.

STRC pays a cash dividend and is managed around a $100 target value. Strategy adjusts the dividend rate, repurchases shares below par and limits new issuance beneath $100 to keep the price anchored near that level.

Back at par, STRC can do more than pay income. Strategy can issue fresh shares again and use the proceeds to buy Bitcoin, making STRC a repeatable source of capital rather than an instrument that requires ongoing price support.

A steadier price also makes STRC more useful in DeFi. Yield becomes less dependent on price movements, while reserves and collateral holding STRC face less mark-to-market volatility.

USDh earns STRC income through its reserve without requiring holders to own the preferred directly or take direct exposure to its share-price swings.
Stake USDh to earn STRC yield.

USDh’s October 2026 attestation is live.

This marks the twenty-second consecutive month of full collateralization, with backing assets held on-chain and independently verifiable.

In summary, as of the snapshot time:

The yield streak continues.

This week:

hBTC: 1.0%
USDh: 7.0%

See you next week, and the week after.

Bitcoin briefly recovered above $81,000 before falling toward $75,200, its lowest level in nearly seven weeks. BTC is now trading around $75,844, down 2.1% from last week’s $77,462. Selling pressure remained elevated following the Binance security breach, with customers withdrawing a net $4.72B from the exchange, while U.S. spot Bitcoin ETFs recorded $869.8M in net outflows this week. Only 38% of short-term holder supply remains profitable, down from more than 97% in early October, leaving a growing share of recent buyers underwater.

The decline accelerated alongside a sharp technology selloff as concerns around AI infrastructure spending and financing returned. The Nasdaq fell 5.5% in one session, while semiconductor stocks dropped 12.2%, contributing to roughly $1.26B in crypto liquidations, including $1.12B in long positions.

Data Summary:

Simple Moving Averages (SMAs) in Figure 1:

Bitcoin is trading around $75,844, below its 360-day SMA at $76,273. Immediate support sits near $75,700, around the short-term holder cost basis, followed by this week’s low at $75,200. Below that, the 180-day SMA near $72,592 is the next major support level. A concentration of potential long liquidations between $73,000 and $76,000 could add forced selling if BTC continues lower.

Resistance sits at the 360-day SMA near $76,273, followed by the 7-day SMA at $77,499 and True Market Mean near $77,700. Above those levels, the 30-day SMA at $80,525 and estimated U.S. spot Bitcoin ETF cost basis near $81,500 form the next resistance zone. Reclaiming $77,700 would improve the near-term trend, while a sustained move above $80,525 would strengthen the recovery. A move below $75,200 would make $72,592 the next major support level.

Net outflows totaled $869.82M this week.

U.S. spot Bitcoin ETF outflows increased from $202.59M last week, with three of four trading sessions recording net withdrawals. Cumulative net inflows fell to $56.11B from $56.98B, while total net assets declined from $98.14B to $96.65B, reflecting both investor withdrawals and Bitcoin’s lower price. November has already recorded $869.82M in net outflows, exceeding October’s $515.03M outflow.

DVOL rose to 41.25% from 40.01% last week. DVOL spent most of September and October between 35% and 40%, briefly reaching 44.25% after the Binance breach. At 41.25%, volatility remains elevated relative to recent months, but still far below February’s peak near 90%.

Short-dated options carry the highest premiums. November 7 at-the-money implied volatility is near 47%, compared with 41% for November 13 and 39% for November 27. Puts also trade above comparable calls, showing that traders are paying more to protect against further downside as Bitcoin tests recent lows.

Bitcoin’s equal-weighted futures basis remained at 5.55%, unchanged from last week. The nearest contract fell to 5.03%, while November 27 rose to 5.83% and longer-dated contracts stayed around 5.6%. Near-term futures demand weakened, while longer-dated premiums remained steady. Futures still trade above spot across all maturities.

The U.S. midterm elections reshaped Congress, with control of both chambers changing hands. Markets were volatile around the result, with Brent falling below $100 per barrel while technology stocks sold off sharply. The Nasdaq dropped 5.5% on November 5, while Nvidia fell 9.3% and AMD 17.3%, as investors continued to reassess the financing and regulatory outlook for AI infrastructure.

U.S. economic data remained firm. October payrolls increased by 165,000, unemployment slipped to 4.1%, and average hourly earnings rose 0.4% month-on-month. August and September payrolls were also revised higher by a combined 84,000. The stronger labor data gives the Fed less reason to ease quickly, even as lower oil prices could reduce some inflation pressure.

Bitcoin received little support from lower oil prices or falling Treasury yields. The 10-year yield declined from 4.94% to 4.84%, but BTC fell toward $75,200 while U.S. spot Bitcoin ETFs recorded $869.82M in net outflows. The drop in yields reflected investors moving into government bonds during the equity selloff, rather than a broad improvement in liquidity. Bitcoin’s recovery depends more on renewed spot demand and stabilization across technology and credit markets than on lower Treasury yields alone.

Sincerely,
The Hermetica Team