Key Takeaways
- Bitcoin stabilized near $63,400 Wednesday after sharp intra-day swings, holding its $1.27 trillion market cap.
- Total crypto market liquidations reached $153.2 million while Strategy downplayed recent token sales.
- Glassnode warned that low spot buyer demand leaves bitcoin wedged beneath its $68,700 cost-basis hurdle.
Bitcoin Trades Flat Following Volatile Intra-Day Swing
After declining for two consecutive days, bitcoin was largely flat Wednesday as the sell-off sparked by Strategy’s latest bitcoin sale appeared to have run its course. Market data shows that bitcoin traded mostly below $63,800 between Tuesday afternoon and early Wednesday morning. However, shortly after 5 a.m. EST, a sharp rally lifted the cryptocurrency past $64,000 on its way to a daily peak of just over $64,400.
An equally sharp sell-off followed, pulling bitcoin down to $63,317 before it rebounded to just above $63,400. Bitcoin traded at nearly the same price level as 24 hours earlier—a rare occurrence for an asset widely considered one of the most volatile in recent years.
The flat price action left bitcoin’s market capitalization unchanged at $1.27 trillion and its seven-day loss at 2%. In the derivatives market, liquidations were subdued at $32.3 million, with long bets accounting for $20.5 million of the total. Overall, crypto market liquidations topped $153.2 million, split between $86.6 million in short positions and $66.7 million in long positions.
Despite previously heavily defending his company’s bitcoin sales, Strategy CEO Phong Le sought to allay concerns that it is becoming a net seller. Speaking in a recent interview, Le suggested that the company will return to buying more bitcoin throughout the rest of 2026. The CEO also tried to downplay recent sales, noting that the offloaded bitcoins remain a fraction of the 175,000 bitcoins it has bought since the start of the year.
In addition to Le’s reassurance, the top cryptocurrency received a modest boost from U.S. inflation data showing that price pressures eased in July. Data shows the Consumer Price Index (CPI) declined to 3.4%, down slightly from 3.5% in June. However, economists noted that as long as energy prices remain elevated, the prospects for a faster decline remain limited. The latest print also likely complicates the Federal Reserve’s path ahead of its September FOMC meeting.
Blockchain analytics firm Glassnode struck a cautious tone regarding the market’s subdued reaction to the CPI release, noting that a weak response to favorable economic news is itself a warning signal. According to Glassnode, sellers appear to be tiring while buyers remain largely absent, leaving bitcoin wedged between its median realized price of $63,000 and the short-term holder cost basis of $68,700.
The firm warned that unless demand returns to build on the benign inflation backdrop, the market remains vulnerable to overleveraged long positioning on low spot volume.