- Bitcoin reclaimed the $63,000 level despite Strategy’s largest-ever sale of 3,588 BTC worth around $216 million, showing strong market resilience.
- BTC is up nearly 6% over the past week, recovering from a 21-month low near $58,000 recorded in late June.
- Sunday’s rally was driven mainly by $415 million in net futures buying, while Monday’s recovery gained strength from both $568 million in futures inflows and $143 million in spot buying.
Bitcoin (BTC) rose again above $63,000 at the time of writing, showing resilience even after Strategy, the world’s largest corporate Bitcoin holder, reported the sale of 3,588 BTC worth around $216 million to support dividend payments. Despite the fact that this was the company’s largest Bitcoin sale to date, the market recovered swiftly.
Source: TradingView
Before easing back to the low $62,000 range, Bitcoin (BTC), the leading digital asset by market value, briefly climbed to $64,400. Despite the pullback, the cryptocurrency has risen roughly 6% over the past week, rebounding from a 21-month low near $58,000 in late June.
A change in market attitude is evident in the recent price behavior. With almost $415 million in net futures purchases, derivatives trading was the primary driver of Sunday’s surge toward $64,000. Approximately $687 million in futures inflows and $33 million in short liquidations occurred in a single four-hour period.
Bitcoin Bulls Bounce Back
Following the release of Strategy’s filing, the market saw a reversal on Monday. Within four hours, Bitcoin futures saw a net selling of around $456 million, with liquidations totaling about $42 million in long positions and $49 million in short positions.
The recovery later in the day, in contrast to Sunday’s move, was bolstered by both $568 million in futures purchases and roughly $143 million in spot purchases, indicating greater involvement from cash purchasers.
Bitcoin’s financing rate was positive for over a week despite the volatility, indicating that leveraged traders were still optimistic. Although the market is susceptible to abrupt drops due to the crowded long positions, open interest is still close to $20.6 billion, suggesting that optimism is still present.
Fed Minutes Put Bitcoin In Focus
Macroeconomic trends are also of interest to market participants. This week, the U.S. Federal Reserve will make public the minutes of its June policy meeting. The likelihood that interest rates will stay between 3.50% and 3.75% in July is currently assigned by markets at 75.6%. Leveraged cryptocurrency positions could be under pressure from any hawkish indications.
Analysts observe that institutional participation is still low. CME Bitcoin futures open interest has dropped to a 32-month low, while six-month options skew has risen to its fourth-highest level ever, according to Yusuf Fakhro, partner at ARP Digital. This trend was previously observed close to significant market bottoms in 2022.
Beyond cryptocurrency, a reported missile strike on a liquefied natural gas vessel close to the Strait of Hormuz raised oil prices and reminded investors that wider macroeconomic risks may potentially affect digital asset markets, bringing geopolitical tensions back into the spotlight.
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