Bitcoin (BTC) fell more than 4% on Monday after software firm Strategy disclosed that it had sold 3,588 Bitcoin to fund preferred stock dividend payments and strengthen its cash reserves.
According to market data, Bitcoin dropped to around $61,000 before recovering slightly to trade near $62,000 during the U.S. trading session. The decline erased most of the cryptocurrency’s recent gains and triggered increased volatility across the broader digital asset market.
Strategy said the Bitcoin sale was completed through July 5, with the proceeds used to meet dividend obligations and improve liquidity. The announcement prompted a negative market reaction, with traders viewing the move as a sign that the company could continue selling Bitcoin if needed.
Several market analysts said the sell-off accelerated an already weakening market. Some traders pointed to positive funding rates and fading buying momentum as factors contributing to the decline, warning that Bitcoin could remain under pressure in the short term.
Strategy, formerly known as MicroStrategy, is the world’s largest corporate holder of Bitcoin and has played a major role in institutional adoption of the cryptocurrency. Because of its substantial Bitcoin holdings, any buying or selling activity by the company often has a significant impact on market sentiment.
Market analyst Rekt Capital noted that Bitcoin’s current price action resembles the pattern seen during the latter stages of the 2022 bear market, when the 50-month exponential moving average acted as strong resistance.
However, not all analysts turned bearish. Some pointed to bullish technical indicators on longer timeframes and suggested the recent decline could be temporary. Crypto analyst Michaël van de Poppe also speculated that Strategy may announce additional Bitcoin purchases in the coming days, potentially offsetting the recent sale and improving market sentiment.
