Bitcoin Price Falls as Strategy Plans $5bn BTC Sell to Fund Dividend<\/p>\n
Bitcoin price fell by about 2% to $63,039, underperforming a slightly negative broader market, primarily driven by renewed institutional selling pressure from spot Bitcoin ETFs and corporate treasuries.<\/p>\n
The total cryptocurrency market capitalisation fell 1.6% to $2.25 trillion. Bitcoin (BTC) dropped to trade at $63,000, while Ethereum (ETH) also declined 2.1% to $1,870.<\/p>\n
Sector performance was mixed: the NFT and GameFi sectors recorded gains of 7% and 6% respectively, whereas the Real-World Assets (RWA) and Decentralised Finance (DeFi) sectors each suffered a 3% loss.<\/p>\n
BTC moved down due to direct selling from ETF redemptions and corporate treasury plans, led by BlackRock\u2019s IBIT outflows and Strategy\u2019s announced $5 billion sales plan.<\/p>\n
BlackRock\u2019s iShares Bitcoin Trust (IBIT) saw clients redeem 1,948 BTC (worth ~$123 million) on July 31, forcing the ETF to sell the underlying Bitcoin.<\/p>\n
Concurrently, Strategy (formerly MicroStrategy) announced plans to sell up to $5 billion of its Bitcoin holdings to fund dividends and share buybacks.<\/p>\n
This created direct, measurable selling pressure. The two largest institutional Bitcoin holders are simultaneously providing supply, overwhelming marginal demand.<\/p>\n
The sell-off occurred amid a risk-averse macro backdrop for crypto. Momentum for the key U.S. crypto market-structure bill (the CLARITY Act) faded as Senate passage before the August recess grew unlikely.<\/p>\n
Furthermore, disappointing Q2 earnings from major crypto firms like Coinbase, which saw its stock tumble over 10%, added to negative sector sentiment.<\/p>\n
Without a positive regulatory catalyst and with weak sector fundamentals, traders lacked conviction to buy the dip.<\/p>\n
Technically, Bitcoin is testing the $62,400 level that marked a two-week low on July 31. The 7-day RSI at 36.8 suggests the market is nearing oversold territory, which could support a short-term bounce.<\/p>\n
However, the price remains below key moving averages, confirming a bearish near-term structure. The path of least resistance is sideways to down unless a catalyst reverses ETF flows.<\/p>\n
A decisive break and daily close below $62,400, which could trigger further liquidations and a test of the next major Fibonacci support at $61,111.<\/p>\n