After two consecutive days of decline, Bitcoin mostly traded sideways on Wednesday as the sell-off triggered by the latest Bitcoin sales by Strategy appeared to have subsided. Market data shows that from Tuesday afternoon until early Wednesday morning, Bitcoin mostly traded below the $63,800 level. However, shortly after 5 a.m. Eastern Standard Time (EST), a sharp rally pushed the cryptocurrency above $64,000, reaching a daily high just above $64,400.
This was followed by an equally sharp sell-off, dropping Bitcoin to $63,317 before it rebounded slightly above the $63,400 mark. Bitcoin was trading at nearly the same price level as it was 24 hours earlier—a rare occurrence for an asset widely considered one of the most volatile in recent years.
As a result of the stable price action, Bitcoin's market capitalization remained unchanged at $1.27 trillion, with its seven-day decline at 2%. In the derivatives market, liquidation volume was moderate at $32.3 million, with long positions accounting for $20.5 million of the total. Overall crypto market liquidation volume exceeded $153.2 million, of which $86.6 million came from short positions and $66.7 million from long positions.
Although Strategy CEO Fong Le had previously defended the company's Bitcoin sales, he sought to alleviate concerns that the company is becoming a net seller. In a recent interview, Le indicated that for the remainder of 2026, the company would return to more active Bitcoin purchases. The CEO also downplayed the recent sales, noting that the sold Bitcoins constitute only a small portion of the 175,000 Bitcoins the company has acquired since the beginning of the year.
In addition to Le's reassurances, the leading cryptocurrency received minor support from US inflation data indicating easing price pressures in July. Data shows the Consumer Price Index (CPI) declined to 3.4%, slightly below June's 3.5%. However, economists noted that as long as energy prices remain elevated, prospects for faster inflation reduction remain limited. The latest data likely also complicates the Federal Reserve's task ahead of the September Federal Open Market Committee (FOMC) meeting.
Blockchain analytics firm Glassnode offered a cautious assessment of the market's muted reaction to the CPI release, noting that a weak response to positive economic news is itself a warning signal. According to Glassnode, sellers appear to be tiring, while buyers are still largely absent, leaving Bitcoin stuck between its median realized price of $63,000 and the short-term holder cost basis of $68,700.
The company warned that if demand does not pick up against a favorable inflation backdrop, the market remains vulnerable to excessively leveraged long positions amid low spot trading volume.
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