Bitcoin staged a sharp reversal on Tuesday after corporate holder Strategy disclosed the sale of 3,588 BTC worth roughly $216 million. The cryptocurrency briefly slipped below $62,000 but climbed back toward $63,800 within hours — a V-shaped rebound that caught many traders off guard.
Bitwise CEO Hunter Horsley commented on the swift recovery, saying Bitcoin "wants to be higher." He pointed to the rapid absorption of the sell order as evidence that underlying demand remains strong despite a high-profile corporate exit.
Strategy Boosts Cash Reserve to $2.55B, Dividend Coverage Extends to 17 Months
While Strategy reduced its Bitcoin stack by 3,588 coins, the company still holds 843,775 BTC — making it the largest corporate Bitcoin owner by a wide margin. More importantly, the sale dramatically improved its dollar liquidity. Cash reserves jumped from a precarious $870 million earlier this year to approximately $2.55 billion after the transaction.
Grayscale Head of Research Zach Pandl said the new balance sheet structure should ease anxiety around Strategy's financing model. Previously, the company's dollar reserves covered only about six months of preferred share dividends. Now the coverage extends to roughly 17 months, reducing the need for discounted equity issuance or further BTC sales in the near term.
Investors largely interpreted the move as a liquidity optimization decision rather than a bearish signal. Strategy's core Bitcoin position remains intact, and the stronger cash buffer provides breathing room for future capital needs.
Weaker US Jobs Data Fuels Rate-Cut Hopes, Supporting Bitcoin
Beyond corporate news, macroeconomic factors also played a role. A softer-than-expected US employment report pushed bond yields lower and reinforced expectations for Federal Reserve rate cuts later this year. The shift in monetary policy expectations provided a tailwind for risk assets including Bitcoin.
Bitcoin exchange-traded funds (ETFs) continue to see mixed flows, with some products recording outflows last week. However, the spot market showed resilience as buyers stepped in to absorb selling pressure — a pattern consistent with Horsley's view that the market wants higher prices.
With Bitcoin holding above the $62,000 support floor and macro conditions turning more favorable, traders are now watching for a potential breakout above the $64,000 resistance level ahead of next week's FOMC decision.