[Digital Today reporter Yoonseo Lee] Bitcoin rebounded to the $64,300 range, supported by BlackRock’s shift to large-scale buying.

U.Today, a blockchain media outlet, reported on July 6 local time that the bearish trend of recent days widened immediately after Strategy disclosed a bitcoin sale, but BlackRock’s spot bitcoin exchange-traded fund (ETF) IBIT quickly absorbed supply and prices rose again.

The direct trigger for the market shock was Strategy’s sale disclosure. Strategy, led by Michael Saylor, said it sold about $216 million worth of bitcoin last week to pay dividends. After the news was reported, bitcoin prices fell immediately and bitcoin slipped below the $62,641 intraday support level.

Institutional demand flowed in immediately during the decline. BlackRock’s order book absorbed the wave of sell orders that poured in through Coinbase Prime. Arkham data showed BlackRock bought at lower prices in batches of 300 bitcoin at a time and added a large purchase of 1,000 bitcoin, putting in more than $80 million in total.

In the process, BlackRock also bought an additional 7,500 ether through its spot ethereum ETF, ETHA. It effectively deployed funds into both bitcoin and ethereum at the same time.

Earlier, during a summer price downturn, IBIT recorded net outflows of more than $772 million through early July. Total net assets also fell to $44 billion, based on SoSoValue. Bitcoin retreated from its spring peak and at one point fell to a local low near $59,000, and BlackRock’s share of bitcoin holdings also declined to slightly above 3.5 percent of global supply.

This rebound was not explained solely by BlackRock’s move. Over the past few days, large whale wallets were also tallied as buying more than 270,000 bitcoin at the low. With that demand overlapping, the bitcoin price quickly recovered on Bitfinex, and the relative strength index (RSI) rose to 65, suggesting a return of buying.

The market again confirmed that ETF outflows and corporate sale disclosures can act as short-term downward pressure. At the same time, it also showed that prices can snap back quickly if institutions use declines as buying opportunities. An assessment is emerging that the recent selling flow within ETFs ended as a typical move in which "emotional selling created a discounted zone, and BlackRock used it as an immediate re-entry opportunity."

The key point to watch next is whether IBIT’s fund flows actually turn into net inflows. With accumulated net outflow pressure still in place, whether institutional buying remains a temporary dip-buying move or becomes a signal of a shift in ETF supply and demand will remain a variable determining the market’s near-term direction.