• Bitcoin buyers remain low on conviction at the $60,000 level, with continued selling and defensive derivatives positioning limiting recovery.
• Strategy approved a Bitcoin monetization program allowing up to $1.25 billion in BTC sales to strengthen liquidity.
• Bitget's Lacie Zhang shared that Strategy's plan eases funding concerns but marks a shift from its long-term Bitcoin accumulation strategy.

Bitcoin (BTC) is trading around the $60,000 level on Monday after a sharp decline last week. With the top crypto struggling to recover, analysts suggest the market remains firmly in defensive territory as investors await stronger signs of demand.

Bitcoin lacks conviction amid $60K recovery

Glassnode analysts stated that Bitcoin's recent stabilization has yet to translate into a meaningful recovery despite finding support near $58,000 after a brief break below $60,000 last week. The firm attributed the stalled price movement to a lack of conviction among buyers.

"Buyers have so far lacked the conviction required to establish a sustained recovery, leaving price range-bound near local lows," Glassnode wrote in a report on Monday.

The onchain analytical firm noted that the market remains in a "phase of structural adjustment" as investors adopt a defensive position. Although trading activity has picked up, Glassnode stated that spot markets continue to experience persistent net selling, indicating liquidity is still being used to distribute Bitcoin rather than accumulate it.

The cautious sentiment extended into derivatives markets, where traders are reducing leverage while increasingly paying for protection against further downside.

Glassnode noted that options skew has climbed well above historical norms, reflecting elevated demand for protective positioning even as funding rates remain relatively subdued.

The weak sentiment is also reflected in institutional demand for Bitcoin. US spot BTC ETFs have slipped into an aggregate unrealized loss position, with continued net outflows indicating that large investors remain reluctant to increase exposure despite elevated trading volumes.

Strategy authorizes Bitcoin sales to strengthen liquidity

On the other hand, Strategy announced a new Digital Credit Capital Framework to strengthen its preferred securities, according to a Form 8-K filing on Monday.

The company stated that its USD reserve stood at $2.55 billion as of June 28, including proceeds from unsettled at-the-market (ATM) share sales.

Strategy also authorized a $1 billion repurchase program for its Digital Credit Securities. The buybacks may be executed through open-market purchases, private transactions, or other permitted methods and can be modified or suspended at any time.

To support the framework, the board approved a Bitcoin monetization program that allows the sale of up to $1.25 billion in BTC to shore up its cash reserve. Proceeds may also be used to fund dividend and interest payments, or finance the newly announced repurchase programs.

“Any Bitcoin sold under this program locks in realized losses, which is a meaningful shift from the company's long-held ‘accumulate and never sell’ posture,” Lacie Zhang, Research Analyst at Bitget Wallet, wrote in a note to FXStreet.

However, Zhang noted that the framework appears to have reassured investors by addressing concerns over Strategy's liquidity position.

“Analysts had flagged that Strategy's cash reserve had shrunk to cover just 14 months of preferred dividend costs,” she stated.

She added that rebuilding the company's USD reserve to $2.55 billion extends the liquidity timeline to roughly 26 months, helping restore confidence among shareholders, particularly holders of STRC, which had been trading well below its $100 par value. Zhang added that the framework signals a more disciplined approach to managing Bitcoin as a corporate treasury asset.

Strategy boasts a reserve of 847,000 BTC. The company's MSTR Class A common stock closed with a 12.6% gain following its recent announcement, ending a nine-day losing streak.

Bitcoin is trading at $60,450, up 1.6% in the past 24 hours at the time of writing.