Bitcoin rose again, quickly compensating for its sharp drop during the day following a large-scale institutional sell-off. After Strategy, known for Michael Saylor, announced that he sold 3,588 BTC for approximately $216 million, the leading cryptocurrency briefly fell below $62,000, then recovered to around $63,800.
Aftermarket reaction remained limited
In the first place, the news of the sale created pressure on the market. Strategy shares fell 4% in pre-market trading, while Bitcoin also experienced a brief decline. However, the weakness that occurred after the sale was not permanent and a more balanced outlook came to the fore in the market.
Bitwise CEO Hunter Horsley summarized the latest movement in Bitcoin with a brief evaluation and said, “Bitcoin wants to go higher.”
Strategy is being closely watched as a company previously known as MicroStrategy and standing out for holding a large amount of Bitcoin on its balance sheet. According to the company’s latest statement, it has 843,775 BTC in its reserves. In addition, cash reserves in dollar terms reached 2.55 billion dollars.
Macro data and interest expectations are monitored
The recovery in Bitcoin has revealed a resilient outlook despite recent macroeconomic fluctuations. The softening in the employment data announced in the USA increased the expectations that the US Federal Reserve might cut interest rates. This table created a supportive basis for risky assets.
Despite this, although the short-term trend seems positive, ETF flows and market positioning continue to put pressure on Bitcoin. Therefore, the possibility of continued volatility in price movements remains.
Grayscale review focused on financing structure
Grayscale research unit manager Zach Pandl said that the latest steps of the company, which established a digital asset-focused treasury structure, could re-strengthen confidence in the financing model. Pandl thinks that this process may contribute to a more permanent bottom in the Bitcoin price.
Zach Pandl emphasizes that Strategy’s balance sheet remains strong, but changing market conditions have created uncertainty for some time.
By the end of May, the company’s dollar reserves had decreased to approximately 870 million dollars. This level meant approximately six months’ security for dividend obligations on preferred shares. This raised questions about whether the company would sell new shares at low valuations, divest Bitcoin, or follow a different path to generate cash.
The new framework announced at the end of June seems to have reduced this uncertainty. After the last $216 million Bitcoin sale, Strategy’s dollar reserve increased to $2.55 billion. This amount indicates a coverage period of approximately 17 months in terms of dividend obligations.
