Bitcoin Rebounds After Strategy Sale Shock; Funding Rate Recovers to 9% Annualized

Bitcoin slid to $61,300 after Strategy announced a sale, but quickly rebounded. Derivatives indicators have also partly recovered, though it is still too early to call a bullish turn.

Cointelegraph reported on July 6 that the annualized funding rate for Bitcoin perpetual futures rose to 9%. Laevitas, a derivatives data platform, said that suggests leveraged long and short demand is moving back into balance. The funding rate, which turned negative last Saturday, has returned to a neutral level.

The options market still showed caution. On Deribit, put option premiums exceeded call option premiums, lifting the put-call ratio to 1.15. That metric is typically interpreted as a sign of extreme anxiety when it rises above 2, so the current reading remains below that threshold and within a neutral range.

Spot Bitcoin exchange-traded fund flows offered a sign of reversal. US-listed spot Bitcoin ETFs recorded $223 million in net inflows last Friday, ending a run of 10 straight trading days of net outflows. Even so, cumulative net outflows for June reached a record $4.51 billion.

Strategy's financial position also remains in focus. The company secured $216 million in cash through the Bitcoin sale, easing some concerns over its ability to pay dividends and repay debt. Its current cash holdings can cover about 17 months of dividend payments. Still, unrealized losses based on the current Bitcoin price versus its average purchase price stand at $8 billion.

On-chain data pointed to easing selling pressure. Glassnode said long-term holders moved an average of 4,130 Bitcoin per day to exchanges, down from 8,040 Bitcoin a week earlier. Cointelegraph said derivatives market participants are likely to remain skeptical of a sustained move above $65,000 unless spot ETF net inflows continue.