Bitcoin recovers from Strategy's BTC sale, funding rates hit 9%: Are bulls back?
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- Bitcoin recovered from a selloff to $61,300 triggered by Strategy's BTC sale, bouncing to $63,500 — though analysts said the rebound failed to restore full bullish conviction
- Strategy sold Bitcoin for a $216 million cash position, easing investor concerns about its ability to pay dividends and service debt
- Bitcoin perpetual futures annualized funding rate hit 9% on Monday, distancing from Saturday's negative rates and indicating balanced demand between bullish and bearish leverage
- US-listed spot Bitcoin ETFs recorded $223 million in net inflows on Friday — the first positive day after 10 consecutive outflows, following a record-high $4.51 billion in June outflows
- Strategy's STRC preferred perpetual equity, which offers a 12% yield, saw a record drawdown; new issuance is restricted to the fixed $100 price, limiting the company's fundraising options
- Long-term holders cut transfers to exchanges to 4,130 BTC per day, down from 8,040 BTC a week earlier — a signal of selling exhaustion that strengthens the $60,000 support level
- Strategy holds cash reserves sufficient for 17 months of dividend payouts and carries just 8% debt leverage, but sits on $8 billion in unrealized losses from its Bitcoin purchases
Why it matters: Strategy's $216 million BTC sale briefly rattled markets, but the company holds 17 months of dividend cash and carries only 8% debt leverage — cushioning the immediate panic. However, $8 billion in unrealized losses means continued Bitcoin weakness below $60,000 could pressure Strategy into additional selling, and derivative traders remain skeptical without a sustained sequence of ETF inflows to confirm a rally past $65,000.
