Bitcoin climbed back above $64,000 on Monday after an intraday dip below $63,000, triggering tens of millions of dollars in short-position liquidations. The rebound came as Strategy confirmed it neither bought nor sold bitcoin during the past week, instead directing new capital toward its cash reserves.
Short sellers caught as bitcoin snaps back
Bitcoin fell to an intraday low of $62,653 before reversing and adding roughly $1,000 in six hours. It then broke through $64,000 and touched an intraday high of $64,375. By the time of the report, it was trading above $64,200 — a daily gain of close to 2% that briefly pushed its market cap past $1.29 trillion.
The move triggered a short-side liquidation wave: Coinglass data showed $57.4 million in liquidated leveraged short positions against $13.3 million in longs over 24 hours. Across the broader crypto market, total liquidations reached nearly $220 million, with roughly $155 million on the short side.
Strategy grows cash pile, freezes bitcoin buys
Strategy neither sold nor bought new coins in the past week. Yet it still lifted its dollar reserves to $4.8 billion, drawing on part of the $333.7 million raised from a common stock sale. The company also used the proceeds to repurchase 1,388,720 STRC shares for $132.2 million and pay $52.4 million in preferred dividends.
Some analysts believe the larger cash buffer largely removes short- to mid-term liquidation pressure tied to preferred dividends or debt servicing. Bitcoin is trading approximately 15% below Strategy's $75,385 average acquisition cost, and analysts argue management is prioritizing balance-sheet health over adding to unrealized losses. Skeptics, however, argue the approach shifts value away from MSTR equity holders toward STRC preferred holders.
Ceasefire report briefly lifts sentiment
Bitcoin also appeared to respond to reports that the U.S. and Iran had agreed to extend a Pakistan-brokered 60-day ceasefire due to expire the same day, which analysts viewed as bullish for markets. That thesis unraveled after Iranian officials refuted the extension reports, leaving bitcoin without formal confirmation of the truce's status at the time of writing.
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