Bitcoin has reversed its Monday decline and closed above $64,000 as bulls began to price in Strategy’s sale of 3,588 BTC. The sale, which was disclosed in a SEC filing, was worth $216 million and was used to fund dividend payments. Strategy still has $1.25 billion in unused sale capacity.
Market Reaction
Sunday’s climb toward $64,000 was driven by futures buying, with net futures buying reaching $415 million for the day. However, spot flows were slightly negative, indicating a lack of cash buyers behind the rally. Monday morning saw an unwind of positions, which accelerated after Strategy’s filing was released.
Funding Rates
Bitcoin’s funding rate has remained firm in positive territory for over a week, including during Monday’s slide. The market’s leveraged optimism remains largely intact, with about $20.6 billion in open futures positions. However, the current setup is fragile due to the funding rate and the number of longs crowded into leveraged positions.
Outlook
Two areas to watch are whether Strategy’s sale marks the beginning of a prolonged selling phase and whether the unused $1.25 billion authorization will weigh on any rally. The Federal Reserve’s release of minutes from its June meeting on Wednesday may also test crowded leveraged long positions, with pressure zones at $62,300 to $62,800 above the market and $61,000 and $59,500 below
Based on reporting from crypto.news.
