Strategy Sells 3,588 Bitcoin for $216 Million to Fund Dividend Payments

Bitcoin News

Bitcoin (BTC) slid from roughly $64,000 to near $62,000 at the start of the week, and our reading of the order flow shows the move was driven by a rapid reversal in leveraged futures positions rather than a mass exit of spot capital. Sunday's push toward $64,000 leaned almost entirely on derivatives, with net futures buying of about $415 million and a single four-hour window absorbing roughly $687 million. Because spot flows stayed marginally negative during that climb, the rally rested on positions that could be forced to unwind. By Monday afternoon, meaningful spot demand of about $143 million had begun to return, steadying the Bitcoin price.

After bottoming at $61,391, Bitcoin rebounded to an intraday high of $64,529.61 in under 24 hours, and both options positioning and exchange-traded fund flows have turned constructive. The broader options market is running call-heavy, with open interest split 60.15% calls to 39.85% puts across all expiries, while the near-term max-pain level sits around $63,000. Spot Bitcoin ETFs added $56.3 million, or 884.97 BTC, on July 6, extending a recovery from a ten-day outflow streak that ended July 2. Total net assets across US spot funds now stand at $72.89 billion, with cumulative inflows of $51.58 billion since the 2024 launch — still short of price levels near the prior all-time high.

Market attention now turns to Wednesday's release of Federal Reserve minutes covering the June 16-17 meeting, the first chaired by Kevin Warsh. Warsh held the benchmark rate at 3.50% to 3.75% for a fourth consecutive meeting, and his tone landed more hawkish than markets anticipated. The central bank dropped its easing bias, and nine of eighteen officials projected a rate increase later in 2026. Traders are pricing a 75.6% probability that rates hold in July. Any hawkish signal in the minutes could pressure the crowded leveraged long positions that have accumulated across Bitcoin derivatives markets, making the release a key near-term catalyst for direction.

The whipsaw exposed how much leverage is layered into the market. When the corporate selling disclosure landed, Bitcoin futures swung to roughly $456 million of net selling in a single four-hour window, triggering liquidations on both sides — about $42 million in long positions and $49 million in shorts. The afternoon recovery combined $568 million in futures buying with fresh spot demand for the first time in days. The funding rate, the periodic payment between perpetual traders that reflects directional bias, has held positive for over a week. With roughly $20.6 billion in open interest, that crowded positioning leaves the structure fragile and vulnerable to a bear market shakeout.

The catalyst was a Monday 8-K filing with the US Securities and Exchange Commission, in which Strategy confirmed selling 3,588 Bitcoin for $216 million to fund preferred-stock dividend payments. The SEC filing shows 1,363 BTC sold at an average of $59,256 early in the week and 2,225 BTC at an average of $60,773 through Sunday, marking the company's first sale since a 2022 tax-loss transaction. The move reduced its treasury to 843,775 BTC, still the largest corporate Bitcoin holding in the world. A further $1.25 billion of sale capacity remains untouched, leaving traders wary that additional supply could reach the market in coming weeks.

In separate news weighing on sentiment, President Donald Trump defended $1.4 billion in crypto-linked income disclosed in his 2025 financial report, telling an interviewer there was “nothing wrong” with the earnings. The figure, part of more than $2 billion in total income from his businesses, drew scrutiny over potential conflicts of interest tied to pending digital-asset legislation. Official disclosures showed his memecoin generated about $636 million, token sales at his family's World Liberty Financial platform contributed roughly $588 million, and an equity stake in a stablecoin venture added $197 million. Advocacy groups have criticized the arrangement, intensifying debate over the Digital Asset Market Clarity Act.

COINOTAG's proprietary 42-indicator composite S/R scoring engine rates the $63,024 support at 89/100 — its strongest reading — driven by the confluence of the Fibonacci 0.214 retracement, the S1 pivot, the point of control and a fresh MACD cross. On the upside, the engine scores the $67,369 resistance at 74/100, anchored by the Fibonacci 0.382 level and the prior-day high, with nearer resistance at $63,684 rated 67/100 on the pivot point and Fibonacci 0.236. Our derivatives desk reads perpetual funding at 0.0064%, open interest at $12.48 billion and a 1.48 long/short ratio (59.6% long) — a crowded stance that fits a Fear and Greed reading of 27. Bitcoin dominance near 69.4% over altcoins underscores the defensive tone; a decisive close below $63,024 would invalidate the bullish case.