What's the hidden background behind Bitcoin breaking $62,000? Is it due to Strategy selling 3588 BTC?

▲ Strategy (MSTR), Bitcoin (BTC)/AI Generated Image ©

The virtual asset market, which had been seeking upward momentum, has once again stumbled, encountering the reefs of macroeconomic uncertainty and a large-scale sell-off by major institutions. While there were high expectations for price increases in the market, a decline has actually unfolded, threatening key support levels and heightening investor tension.

According to cryptocurrency market tracking site CoinMarketCap on July 6 (local time), Bitcoin (BTC) traded down 1.64% over the past 24 hours at $61,645.29, showing a slight weakness exceeding the overall cryptocurrency market cap reduction of 1.42%. This decline is interpreted as a result of a combination of macroeconomic uncertainty and concerns about institutional demand, rather than a single specific negative factor. Furthermore, Strategy, a major player in the virtual asset industry, announced that it sold 3,588 BTC, worth $222.5 million, to fund preferred stock dividend payments, further increasing selling pressure on the market. As a result, Strategy's total holdings decreased to 843,775 units.

Currently, overall investor sentiment in the market is significantly dampened. The global Fear & Greed Index remains at 26, indicating a "Fear" stage, clearly showing an aversion to risky assets. Although liquidations totaling $61.28 million occurred over the past 24 hours, mainly driven by short squeezes (buying pressure resulting from covering or liquidating short positions), and the average funding rate increased by 42%, this is analyzed as merely a chain reaction in the derivatives market due to price declines, and has not yet reached a stage of aggressive leverage liquidation that would induce further crashes.

The short-term market outlook is expected to be somewhat defensive. Experts diagnose that Bitcoin must first reclaim the $62,600 level to regain support. If it fails to surpass this level and even the critical psychological support of $60,000 breaks, there is a risk of further correction, pushing it down to the low range of $58,100 to $58,500 recorded at the end of June.

A key variable that will determine the future direction of the market is the continued inflow of funds into US spot Bitcoin ETFs. Although there was a brief net inflow on July 2, it is pointed out that the continuity is insufficient to defend against market downside pressure. In addition, regulatory adjustments for the US crypto market structure bill, the CLARITY Act, which faces a Senate deadline on August 7, are also acting as a major factor encouraging institutional investors to adopt a wait-and-see approach.

Consequently, the current Bitcoin market is in a phase where new bullish catalysts have dried up, and downward pressure prevails from a neutral stance. The media suggested that investors should focus on risk management for the time being, closely monitoring daily ETF inflow/outflow data and price volatility around the $62,600 resistance level amidst the tightening macro environment.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*