Bitcoin (BTC) Swallows Sailor's Selling Shock... "ETF Money Was Stronger"

▲ Bitcoin (BTC) ETF

Although Strategy sold Bitcoin (BTC) worth $216 million, the market quickly absorbed the shock. At the same time, the purchase volume of Bitcoin spot ETFs reached $265 million, indicating stronger demand than the large-scale selling.

Lark Davis, host of the cryptocurrency podcast The Lark Davis Show, highlighted the market's immediate reaction following Strategy's Bitcoin sale in a video uploaded on July 7 (local time). Strategy disposed of approximately $216 million worth of Bitcoin to fund dividend payments for its digital credit securities. Davis stated, "Bitcoin spot ETFs bought $265 million worth on the same day," assessing the selling shock as mere market noise.

Bitcoin spot ETF fund flows also showed signs of reversal. According to the video, over $200 million flowed in for two consecutive days. This change followed record outflows in June and weeks of net outflows. Davis argued, "ETFs are spot buyers," and if net inflows continue for most trading days this week, it could be positive for a Bitcoin price reversal.

Institutional demand indicators still showed extreme pressure. Coinglass data revealed that the Coinbase Bitcoin premium index recorded negative values for 50 consecutive days since May 19. The recent figure of minus 0.0742% marks the longest negative record since the index's inception. Davis interpreted this trend not as a sell signal but as "extreme stress where everyone is selling and no one wants to buy."

Grayscale Research reportedly assessed that Strategy's Bitcoin sale could lower financing risks and support price stability. Davis also cited Bitcoin's rapid rebound after Strategy's sale as evidence of pent-up buying demand. Former U.S. President Donald Trump's pro-crypto remarks and the re-emergence of discussions regarding a U.S. strategic Bitcoin reserve were also policy variables highlighted in the video.

In altcoins, the fundamentals of Solana (SOL) and Ethereum (ETH) were discussed together. Solana reportedly processed 1 billion non-vote transactions over a weekend, and $8.4 million flowed into Solana spot ETFs. BitMine additionally purchased 42,000 ETH last week. Davis presented the improvement in Bitcoin supply and demand and the network metrics of major altcoins as key grounds for assessing the possibility of a market reversal.

[Article Key Summary]

-Strategy sold $216 million worth of Bitcoin, but Bitcoin spot ETFs purchased $265 million worth on the same day.

-Lark Davis cited the market's rapid absorption of the shock immediately after the large-scale selling as evidence of strong Bitcoin buying demand.

-Solana reportedly processed 1 billion non-vote transactions, and BitMine additionally purchased 42,000 ETH last week.

*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.*