Bitcoin reclaimed lost ground to surpass $63,000 following a brief selloff linked to strategic Bitcoin sales. The rapid price rebound suggests that bearish pressure may have been temporary, as the cryptocurrency’s key support level near $60,000 held firm amid signs of seller fatigue.
Market indicators revealed a notable shift in sentiment. The annualized funding rate for Bitcoin perpetual futures surged to 9%, signaling a more balanced leverage environment between bulls and bears after a phase of negative funding rates. Meanwhile, options markets displayed moderate stress, with the put-to-call ratio settling around 1.15, comfortably within the neutral range and far from levels typically associated with panic selling.
Institutional flows also contributed to Bitcoin’s resilience. Spot Bitcoin exchange-traded funds (ETFs) listed in the US experienced net inflows totaling $223 million after a period of sustained outflows, hinting at renewed investor confidence. This reversal occurred despite heavy June outflows that dampened short-term sentiment. Such positive fund flows could help counteract downward pressure on Bitcoin and encourage a rally towards $65,000.
Another factor influencing market dynamics stems from Strategy’s preferred perpetual equity Stretch (STRC US), which offers a 12% yield. Although the company faces unrealized losses on its Bitcoin holdings and has limited flexibility to issue new shares at its fixed price, it maintains sufficient cash reserves to cover dividend payments for the foreseeable future. This financial stability may reduce the likelihood of further forced Bitcoin sales, easing concerns among investors.
Long-term holder behavior reinforces Bitcoin’s underlying strength. Onchain data indicates a slowdown in transfers from long-term holders to exchanges, a sign that larger investors are not rushing to liquidate. This accumulation trend supports the $60,000 support level and bolsters the case for sustained bullish momentum despite recent volatility.