Bitcoin Price Falls as Strategy Plans $5bn BTC Sell to Fund Dividend
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.
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.
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.
BTC moved down due to direct selling from ETF redemptions and corporate treasury plans, led by BlackRock’s IBIT outflows and Strategy’s announced $5 billion sales plan.
BlackRock’s iShares Bitcoin Trust (IBIT) saw clients redeem 1,948 BTC (worth ~$123 million) on July 31, forcing the ETF to sell the underlying Bitcoin.
Concurrently, Strategy (formerly MicroStrategy) announced plans to sell up to $5 billion of its Bitcoin holdings to fund dividends and share buybacks.
This created direct, measurable selling pressure. The two largest institutional Bitcoin holders are simultaneously providing supply, overwhelming marginal demand.
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.
Furthermore, disappointing Q2 earnings from major crypto firms like Coinbase, which saw its stock tumble over 10%, added to negative sector sentiment.
Without a positive regulatory catalyst and with weak sector fundamentals, traders lacked conviction to buy the dip.
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.
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.
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.
Bitcoin’s decline is rooted in tangible selling from its largest institutional holders, exacerbated by a souring macro narrative for crypto assets. Bitcoin Cash Price Slides on Broader Market Selloffs
