BTC Reclaims $64K as Short Sellers Lose $57.4M in Liquidations

Coinglass data showed bitcoin’s 24-hour price action resulted in $57.4 million in liquidated leveraged short positions, compared to $13.3 million in long bets. During the same period, liquidations across the cryptocurrency market reached nearly $220 million, with short bets accounting for approximately $155 million.

Despite not selling bitcoins, Strategy increased its dollar reserves to $4.8 billion using part of the $333.7 million raised from selling its common stock. It also used the proceeds to repurchase 1,388,720 STRC shares for $132.2 million and pay $52.4 million in preferred stock dividends.

Some analysts believe the expansion of Strategy’s cash reserves virtually eliminates short- to mid-term liquidation pressure for preferred dividends or debt servicing. With bitcoin trading approximately 15% below Strategy’s $75,385 average acquisition cost, analysts argue management is prioritizing balance sheet health and defending against share dilution over adding to unrealized losses.

Although market participants broadly welcomed the suspension of bitcoin liquidations, skeptics maintain that Strategy’s capital allocation strategy disproportionately shifts value away from MSTR equity holders toward STRC preferred holders. Furthermore, by explicitly mothballing its primary catalyst of aggressive bitcoin acquisition until STRC trades back at par value and target liquidity thresholds are met, Strategy has effectively sidelined the company’s core thesis, deal-striking a blow to long-term bitcoin bulls.

Meanwhile, bitcoin appeared to respond positively to reports that the U.S. and Iran agreed to extend a Pakistan-brokered 60-day ceasefire expected to end today. Analysts viewed the reported agreement as bullish for markets, and bitcoin’s price movement seemingly aligned with that assertion.

That bullish thesis, however, quickly unraveled after Iranian officials refuted reports of an extended truce. With no formal confirmation regarding the status of the ceasefire at the time of writing, bitcoin remains deprived of the macro catalyst needed to sustain a decisive breakout.