Bitcoin Price Stuck at $63,400 as ETF Inflows Offset Corporate Selling

Bitcoin's price continued to stall on Tuesday, hovering around $63,400 after a series of events weighed on the cryptocurrency. The market had been under pressure since Strategy revealed it sold 1,690 bitcoins to fund the repurchase of its preferred stock.

The news sent Bitcoin tumbling, but an initial surge to just above $64,400 was short-lived as prices dropped over $1,000 in three hours, reaching an intraday low of $63,394. As of 2:30 p.m. EST, the cryptocurrency was trading at $63,400, down 0.7% over 24 hours.

Data from Coinglass shows that long positions were liquidated more than short positions, with $34.4 million in longs being liquidated compared to just under $5 million in shorts. This trend is a reversal of what was seen earlier, where shorts were being liquidated at a faster rate.

However, the impact of corporate selling and massive liquidations from Strategy was partially offset by $854 million in weekly inflows into spot Bitcoin exchange-traded funds (ETFs). According to Bitfinex analysts, these 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.

Bitfinex analysts highlighted that the pivot from peak capital exodus in June, when ETFs shed nearly 65,800 bitcoins, to strong demand within six weeks represents the most notable trend shift in spot flows this year. They attributed this shift to reemerging accumulation in Blackrock's IBIT and Fidelity's FBTC, as well as broader macroeconomic support including lower oil prices and cooling U.S. labor market data that reduced expectations for a September interest rate hike.

However, Bitfinex warned that a sustained breakout remains constrained by significant overhead supply. An estimated 1.79 million bitcoins sit on-chain at an average cost basis between $62,000 and $65,000. Coupled with persistent corporate treasury liquidations and high long-term Treasury yields, analysts expect Bitcoin to remain bound within its current trading range until ETF inflows consistently outpace selling pressure and softer inflation data lower long-term yields.