Bitcoin Holds Near $60K as Buying Momentum Weakens; Strategy Approves BTC Sales

• Bitcoin remains under pressure near the $60,000 mark as weak buyer conviction, persistent selling activity, and cautious positioning in derivatives markets continue to cap recovery attempts.
• Meanwhile, Strategy has approved a Bitcoin monetization program that permits the sale of up to $1.25 billion worth of BTC, aiming to enhance liquidity and strengthen its financial flexibility.
• According to Bitget analyst Lacie Zhang, the initiative helps alleviate funding concerns but also signals a notable departure from Strategy’s longstanding approach of continuously accumulating Bitcoin.

Bitcoin hovers near $60K as weak demand caps recovery; Strategy approves BTC sales program

Bitcoin (BTC) traded around $60,000 on Monday, attempting to stabilize after last week’s sharp decline. Despite finding support near $58,000, the cryptocurrency has struggled to stage a convincing rebound, with analysts pointing to weak buyer conviction and a broadly defensive market environment.

According to Glassnode, Bitcoin remains stuck near recent lows as buyers have yet to show the confidence needed to drive a sustained recovery. While trading activity has increased, spot markets continue to record net selling pressure, suggesting liquidity is still being used for distribution rather than accumulation.

The cautious mood is also evident in derivatives markets, where traders are scaling back leverage and increasing downside protection. Elevated options skew indicates stronger demand for hedging against further losses, while institutional appetite remains subdued. US spot Bitcoin ETFs have slipped into aggregate unrealized losses and continue to experience net outflows, highlighting limited interest from large investors despite higher trading volumes.

Meanwhile, Strategy unveiled a new Digital Credit Capital Framework aimed at strengthening liquidity and supporting its preferred securities. The company reported a cash reserve of $2.55 billion as of June 28 and authorized a $1 billion repurchase program for its Digital Credit Securities.

As part of the initiative, Strategy’s board approved a Bitcoin monetization program that allows the sale of up to $1.25 billion worth of BTC. The proceeds may be used to bolster cash reserves, fund dividend and interest payments, and support share repurchase programs.

According to Bitget Wallet analyst Lacie Zhang, the move helps ease concerns over Strategy’s liquidity position but also represents a significant shift from the company’s longstanding Bitcoin accumulation strategy. She noted that expanding cash reserves to $2.55 billion extends the firm’s liquidity runway and could improve investor confidence, particularly among holders of its preferred securities.

Strategy currently holds approximately 847,000 BTC, and its MSTR shares rose 12.6% following the announcement, snapping a nine-session losing streak. At the time of writing, Bitcoin was trading near $60,450, up 1.6% over the previous 24 hours.