Bitcoin Stalls at $63,400 as ETFs Outpace Network Issuance

Volatility and Liquidation Trends

Bitcoin remained under pressure Tuesday, more than 24 hours after the revelation that Strategy sold 1,690 bitcoins to fund the repurchase of its preferred stock, which sent the cryptocurrency tumbling. While bitcoin initially appeared to have strong support just below $64,000, market data show it lost momentum after breaching that level.

This trend continued from Monday night until shortly before 4 a.m. EST on Aug. 11, when a rally pushed prices past $64,400 around 8:15 a.m. However, the rally was short-lived, as the cryptocurrency shed more than $1,000 over the next three hours, plummeting to an intraday low of $63,394. As of 2:30 p.m. EST, bitcoin was trading just above $63,400, down 0.7% over 24 hours.

The cryptocurrency’s price action over the past 24 hours once again saw the value of liquidated long bets outpace short liquidations. Coinglass data show that out of $39 million liquidated across the market, long positions totaled $34.4 million, while short positions accounted for just under $5 million.

While corporate selling and a massive $5 billion liquidation authorization from Strategy weighed on bitcoin, the impact appeared partially offset by $854 million in weekly inflows into spot bitcoin exchange-traded funds (ETFs). According to analysts at Bitfinex in their latest Bitfinex Alpha report, those inflows represent the absorption of approximately 13,300 bitcoins — more than four times the roughly 3,150 bitcoins the network issued over the same period.