Bitcoin Rebounds After Strategy Sale, But Are Bulls Really Back?

Bitcoin bounced back fast after Strategy’s Bitcoin sale news sent prices down to $61,300. The extra $216 million in cash eased worries about the company covering its dividends and debt, but the rebound alone doesn’t confirm bulls have full control.

Funding Rates Show Balance, Not Conviction

The Bitcoin perpetual futures funding rate rose to 9% on Monday, moving away from Saturday’s bearish territory but still not signaling strong bullish confidence. Options markets told a different story, with put premiums at Deribit outpacing calls at a 1.15 ratio, a level that remains within normal range despite the shift.

ETF Flows and Long-Term Holders Offer Hope

Friday brought $223 million in net inflows to US spot Bitcoin ETFs, the first positive day after ten straight outflows and a brutal $4.51 billion outflow month in June. Meanwhile, long-term holder transfers to exchanges dropped to 4,130 BTC daily, down from 8,040 BTC a week earlier, hinting at seller exhaustion near $60,000 support.

Strategy’s Losses Keep Bears in the Game

Strategy carries $8 billion in unrealized Bitcoin losses despite low 8% debt leverage, and its Stretch preferred shares have hit record drawdowns. The company holds enough cash to cover 17 months of dividends, easing pressure for further sales, but derivatives traders remain cautious about a sustained rally past $65,000.