Bitcoin recovers from Strategy's BTC sale, funding rates hit 9%: Are bulls back?
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- Bitcoin recovered to $63,500 after falling to $61,300 when Strategy announced a $216 million BTC sale, with the cash proceeds easing concerns about the company's ability to cover dividends and debt.
- Bitcoin perpetual futures annualized funding rate climbed to 9% on Monday, lifting off Saturday's negative levels but stopping short of signalling strong bullish conviction.
- Deribit options saw put premium overtake calls at a 1.15 put-to-call ratio on Monday — under the 2.0 stress threshold but reversing the bullish trend from Thursday and Friday.
- US spot Bitcoin ETFs attracted $223 million in net inflows on Friday, breaking a 10-day outflow streak; June still posted a record $4.51 billion in net outflows.
- Strategy's STRC preferred perpetual equity suffered a record drawdown, with new issuance restricted to the fixed $100 price while the company holds cash reserves equivalent to 17 months of dividend payouts.
- Long-term Bitcoin holders transferred an average of 4,130 BTC per day to exchanges, down from 8,040 BTC the prior week, pointing to seller exhaustion near the $60,000 support level.
- Strategy carries only 8% debt leverage but sits on $8 billion in unrealized losses from its Bitcoin purchases, leaving bearish leverage in place absent a sequence of ETF inflows.
Why it matters: Strategy's $8 billion in unrealized Bitcoin losses and 8% debt leverage keep the company exposed even after the $216 million sale eased near-term dividend concerns, while a 1.15 put-call ratio and the need for sustained ETF inflows after June's record $4.51 billion in outflows show derivatives traders are not yet convinced the bounce above $63,500 will hold.
