Bitcoin Bounces Back Above $63,000
Bitcoin (BTC) reversed early Monday losses and climbed back above $63,000, recovering from a sharp dip triggered by Strategy's (MSTR) disclosure that it sold 3,588 BTC for $216 million last week. The digital asset had rallied over the weekend to nearly $64,000, but gave up those gains after the news broke. Buyers returned mid-morning, pushing prices back to around $63,400 as of noon Eastern Time. The recovery was partly attributed to comments from President Trump, who hinted that bitcoin could be included in Trump accounts, and to growing acceptance that Strategy's sale was not as bearish as initially feared.
Strategy's Bitcoin Sale Sparks Debate
Strategy's sale of 3,588 bitcoin last week marked a dramatic step up from the company's initial sale of just 32 BTC in late May. The earlier sale had sparked a panic-driven plunge that took bitcoin from $74,000 to $60,000 in a few days, with markets fearing the company might be forced to liquidate its massive holdings. However, this time the market reaction was less severe. After a brief dip, bitcoin quickly recovered, suggesting that investors are becoming more accustomed to the idea of occasional sales to fund dividends and operational costs.
Online experts offered diverse perspectives on Strategy's new approach. Peter Schiff, a longtime Bitcoin critic, said: "Strategy now has a completely different business model. Instead of selling common and preferred stock and issuing debt to buy bitcoin, the new strategy is to sell bitcoin to pay interest and dividends, pay off debt, buy back shares it sold, and hope that bitcoin's price goes way up." This view was echoed by Jeff Sekinger, who noted, "Everyone was worried about Saylor getting liquidated. Well, this is it. This is what it looks like. They will sell chunks of BTC at a loss to fund their credit products that aren't backed by cash flow." Others were more optimistic. Joe Burnett of Strive calculated that at the current pace and with zero bitcoin appreciation, today's dividend obligation could be funded until 2056, or indefinitely with just 3.4% annual BTC appreciation. Strategy CEO Phong Le framed the shift as an evolution: "Strategy is evolving from one-way capital issuance to active capital management."
Trump Teases Bitcoin in Presidential Accounts
President Trump added to the market buzz with an offhand comment during a media appearance. When asked whether his personal accounts could include bitcoin, he replied, "Something could happen. I'm a big fan of crypto." Bitcoin bulls were hopeful, but many remained cautious. Trump's administration has delivered some regulatory wins for the industry, but the highly-anticipated Strategic Bitcoin Reserve has seen little movement. Meanwhile, Trump himself reported more than $1 billion in profit from various crypto ventures in 2025, raising questions about potential conflicts of interest. Despite the uncertainty, the comment helped lift bitcoin back above $63,000.
Market Data and Broader Trends
The broader crypto market showed mixed signals. Bitcoin's recovery came alongside a rotation of capital back into AI and semiconductor stocks, which had sold off sharply the previous week. For instance, memory chip maker SK Hynix confirmed plans for a major Nasdaq IPO in July 2026, while data center names like TeraWulf (WULF) surged 13% after signing a 20-year lease with AI giant Anthropic. Some analysts see this as a sign that investors are rotating out of crypto and into traditional tech plays. However, altcoins also performed well: LIT, the native token of decentralized perpetuals platform Lighter, surged 13% after announcing a tokenomics update that includes permanent burns of repurchased tokens. XRP gained 2% as buyers pushed through $1.10 resistance.
Bitcoin's Cycle Perspective
Nine months after reaching its all-time high of around $126,000 on October 6, bitcoin now trades near $62,500, representing a roughly 50% correction. Some analysts point to historical four-year cycles, suggesting that the bottom may still be months away, potentially around October. The jobs report on Thursday came in weaker than expected, which gave liquidity-sensitive assets a lift heading into the weekend. A weakening labor market makes a Fed rate hike less likely, gradually shifting the backdrop that pushed ETF investors out of bitcoin through June. The next key data point is the July 14 CPI release, which could either extend the relief or further cap an early-July rally. Meanwhile, stablecoin market capitalization fell to $312 billion in June, its largest monthly drop since the TerraUSD collapse, while tokenized equity volumes surged 145% to a record $3.86 billion, driven by the SpaceX IPO.
Altcoin Surge and Institutional Moves
Beyond bitcoin, several tokens posted strong gains. LIT's rally was fueled by a tokenomics update that permanently burns repurchased tokens, effectively reducing supply. The protocol also shifted staking rewards from temporary bootstrapping funds to its remaining ecosystem allocation, targeting an initial 6% annualized yield. On the institutional side, American Bitcoin (ABTC) added another 500 BTC to push its total holdings to 8,000 BTC, ranking as the 16th largest publicly traded holder of bitcoin. However, its shares are still down around 70% year to date despite the growing treasury. BitMine (BMNR) added 42,197 ETH tokens last week for about $74 million, now holding roughly 4.8% of the total supply of ether. ETH itself is down 1.5% over the past 24 hours at $1,740.
Source: Coindesk News