Bitcoin recovered above $64,000 after an early-week sell-off triggered by Strategy’s disclosure that it sold 3,588 BTC, worth approximately $216 million, to fund dividend payments.
The cryptocurrency initially fell from nearly $64,000 on Sunday to around $62,000 on Monday as traders reacted to the company’s SEC filing. Despite the decline, buyers stepped in during the session, helping Bitcoin erase losses and close the day above the $64,000 mark.
Market data showed that Sunday’s rally was largely fueled by leveraged futures buying, while spot demand remained weak. Following Strategy’s announcement, futures markets experienced a sharp wave of selling, leading to liquidations of both bullish and bearish positions.
The rebound later in the day appeared more resilient, supported by renewed buying in both futures and the spot market, suggesting stronger underlying demand for Bitcoin.
Although market sentiment remains optimistic, analysts caution that elevated leverage leaves Bitcoin vulnerable to increased volatility. Positive funding rates and roughly $20.6 billion in open futures positions indicate that bullish bets remain heavily concentrated.
Investors are also watching whether Strategy will make additional Bitcoin sales, as the company still has authorization to sell up to $1.25 billion more in BTC.
Attention now turns to the Federal Reserve’s June meeting minutes, due for release on Wednesday. Any hawkish signals on interest rates could weigh on risk assets, including Bitcoin, and test the resilience of the current rally.
