Bitcoin Drops to $93,000 Amid $96,000Breakdown, MARA & El Salvador Fuel Long-Term Bullish Case
El Salvador is still embracing Bitcoin as legal tender despite IMF recommendations.
They got a $1.4 billion loan from IMF but the government is still committed to Bitcoin and will increase reserves beyond the current 5,968 BTC which is worth around $594 million.
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IMF recommended to restrict Bitcoin exposure and only accept US dollars for tax payments but President Nayib Bukele is not deterred. Bukele wants El Salvador to be a global cryptocurrency hub so Bitcoin is strategic.
This shows Bitcoin is becoming a reserve asset despite short term price fluctuations. But IMF restrictions could still affect the market.
MARA Leads Institutional Bitcoin Accumulation
Bitcoin mining giant MARA increased its holdings to 44,394 BTC in November, buying $1.5 billion worth of Bitcoin through convertible note offerings. With an average cost of $98,529 per Bitcoin, MARA’s treasury went up 50% this quarter and 200% this year.
The convertible notes maturing in 2030 and 2031 show institutional confidence in Bitcoin long term. Conversion prices are above MARA’s share price at issuance. Other mining companies like Riot and Hut 8 followed suit and are accumulating more.
This buying activity is keeping Bitcoin’s uptrend going, showing institutional players are confident despite market challenges.
CFTC Whistleblower Fund Faces Financial Strain
The Commodity Futures Trading Commission (CFTC) is facing funding issues for whistleblower rewards after a record year of enforcement. Total fines hit $17.1 billion due to big cases against FTX and Binance. But big payouts like the $200 million reward in 2021 has almost depleted the whistleblower fund which is only $226 million as of September 30.
Payments will be delayed until the fund drops below $100 million so there’s uncertainty over regulatory enforcement. This hesitation is causing market anxiety and putting pressure on Bitcoin prices due to increased scrutiny and regulation.
Bitcoin Price Analysis: Bearish Momentum Persists
Bitcoin is trading at $93,161, down 1.62%, reflecting persistent selling pressure. The recent breakdown below the critical $96,017 support has heightened bearish sentiment, with the next support levels at $92,712 and $90,874.
The 50-day EMA at $102,941 reinforces the bearish tone, as prices remain firmly below this indicator. Meanwhile, RSI at 24.60 suggests oversold conditions, indicating a possible short-term rebound. Immediate resistance lies at $96,017, with additional hurdles at $98,379 and $102,779.
Key Insights
- El Salvador: Holds 5,968 BTC, doubling down on Bitcoin despite IMF pressure.
- MARA Holdings: Acquired $1.5 billion worth of BTC, highlighting institutional confidence.
- CFTC Challenges: Regulatory uncertainty adds downward pressure on Bitcoin.
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