Bitcoin price falls as S&P strategy’s junk rating is called ‘hilarious’

Bitcoin price fell 1.5% over the past 24 hours to trade at $113,980 as of 3:48 a.m. EST, while trading volume fell 7% to $54.8 billion.

The drop came as S&P Global Ratings gave a junk rating to Michael Saylor’s Bitcoin Treasury company Strategy due to its ‘speculative’ exposure to BTC.

The B rating placed the company six below investment grade.

“We view the high bitcoin concentration, limited corporate focus, weak risk-adjusted capitalization and low US dollar liquidity as weaknesses,” the agency said. said.

But the rating marks the first time a Bitcoin-focused treasury company has received an official S&P rating, a major milestone for the crypto industry’s growing overlap with traditional finance.

S&P rating ‘Hilarious’

Some analysts disagreed with the rating. Adam Livingston, an analyst with 56,000 followers on X, called it “hilarious.”

Please read this as it relates to Strategy’s creditworthiness.

It’s hilarious

S&P Global: “We will likely continue to view capital as a weakness as Strategy’s bitcoin holdings are likely to grow significantly”

So basically “the more Bitcoin they buy, the weaker… pic.twitter.com/vC4khB4sog

— Adam Livingston (@AdamBLiv) October 27, 2025

VanEck’s Matthew Sigel said the B rating puts Strategy in high-yield territory, implying a default risk of about 15% over five years.

🚨Strategy Inc is assigned a credit rating of ‘B-‘; Outlook stable at S&P

That’s high-yield territory. Able to service debts for the time being, but vulnerable to shocks.

S&P data: B issuers have a five-year default risk of ~15%. https://t.co/ingZu6DRmH pic.twitter.com/RrHOWYmzVG

— Matthew Sigel, recovering CFA (@matthew_sigel) October 27, 2025

Despite the agency’s rating, Strategy Stocks (MSTR) rose almost 2.3% yesterday to trade at $295.63.

Meanwhile Strategy added added another 390 BTC to his hoard on Monday for an amount of approximately $43.4 million. The company now owns 640,808 BTC.

Bitcoin price recovers above key resistance levels during bullish recovery

The BTC price has staged a strong recovery over the past week, indicating that the bulls are regaining strength after a period of consolidation and correction earlier in October.

After the sharp decline from the local high of almost $118,600, Bitcoin found support around $103,350, signaling the start of a new recovery phase.

Since then, the BTC price has risen steadily, breaking several Fibonacci retracement levels.

Currently, Bitcoin is trading around $113,980 after rising above both the 50-day and 200-day Simple Moving Averages (SMAs) within a four-hour span, a strong signal that buyers are regaining control of the market.

The Relative Strength Index (RSI) is currently above the 50 center line level at 57.99. This reading indicates that bullish momentum remains dominant, but there is plenty of room for further upside before the overbought environment approaches.

Furthermore, the Chaikin Money Flow (CMF) shows a slightly positive value of +0.04, indicating steady capital inflows and growing investor confidence. Sustained readings above +0.10 would confirm stronger accumulation.

BTC is testing the 0.618 Fib level ($114,324), which corresponds to the 200-day SMA, a historically significant confluence point. A successful break above this area could accelerate gains towards $116,900-$118,600.

BTC Price Bulls Eye Prices Above $118,000

Based on the continued recovery attempt, BTC price appears poised to move further towards the higher resistance band provided it maintains momentum above the 50-day and 200-day SMAs.

If bullish pressure continues, the next major resistance levels are at $116,900 (0.786 Fib) and $118,600 (recent swing high). A breakout outside this zone could open the way to the Fibonacci extension target of $131,280, which represents a potential upside of 15% from current levels.

Ali Martinez, a popular crypto analyst on

Bitcoin $BTC: Everything depends on this trend line! pic.twitter.com/n492Yjxi6b

— Ali (@ali_charts) October 28, 2025

Conversely, if the BTC price fails to hold above $111,900 (Fib 0.5), a pullback to $110,000 or even $107,400 (Fib 0.236) could occur in the short term before another upward attempt is made.

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