Bitcoin slipped 0.7% to $63,394 on Aug. 11 after a morning rally to $64,400 failed, with $39 million in liquidations hitting long positions hardest. Strong spot ETF inflows are offsetting Strategy's latest bitcoin sale, but analysts say a breakout remains capped by heavy overhead supply.
Bitcoin lost its footing Tuesday, more than 24 hours after Strategy sold 1,690 bitcoins to fund a stock repurchase, a move that sent the cryptocurrency tumbling. The coin briefly found support just below $64,000 before losing momentum and breaking lower.
Rally fades, longs get squeezed
A rally pushed prices past $64,400 around 8:15 a.m. EST on Aug. 11, but it did not hold. Bitcoin shed more than $1,000 over the following three hours, touching an intraday low of $63,394 before trading just above $63,400 by 2:30 p.m. EST, down 0.7% over 24 hours.
The pullback hit long positions far harder than shorts. Coinglass data show long liquidations totaled $34.4 million out of $39 million liquidated across the market, while shorts accounted for just under $5 million.
ETF inflows offset corporate selling
Strategy's $5 billion liquidation authorization and its latest sale weighed on sentiment. Yet spot bitcoin ETFs pulled in $854 million over the week, according to Bitfinex analysts, absorbing roughly 13,300 bitcoins — more than four times the roughly 3,150 bitcoins the network issued over the same stretch.
That shift stands out against June, when ETFs shed nearly 65,800 bitcoins. Bitfinex analysts called the pivot to strong demand within six weeks the most notable turn in spot flows this year, led by heavy accumulation in Blackrock's IBIT and Fidelity's FBTC. Cooling U.S. labor data and lower oil prices have also trimmed expectations for a September interest rate hike, adding macro support.
However, Bitfinex warned a sustained breakout stays capped by heavy overhead supply. An estimated 1.79 million bitcoins sit on-chain with an average cost basis between $62,000 and $65,000. Combined with ongoing corporate treasury sales and elevated long-term Treasury yields, analysts expect bitcoin to stay range-bound until ETF inflows consistently outpace selling and softer inflation data pull yields lower.
Source: Bitcoin News
Trading involves risk.
Risk Disclaimer
