- Bitcoin price is struggling around $95,000 after erasing gains from Friday’s relief recovery over the weekend.
- The weekly chart of the price of bitcoin marks the first major decline since President-elect Donald Trump’s victory in November.
- Spot ETFs see large volume outflows, as Metaplanet spends nearly $60 million to buy Bitcoin’s dip.
- Bitcoin’s strategic reserve could represent 35% of the US national debt by 2049 if the country acquires 1 million BTC tokens, VanEck says.
Bitcoin (BTC) is hovering around $95,000 on Monday after losing the gains made during Friday’s rally. The biggest cryptocurrency hit a new all-time high of $108,353 on Tuesday, but this was followed by a sharp correction after the US Federal Reserve signaled fewer interest rate cuts than previously expected in 2025.
Spot Bitcoin ETFs saw massive outflows of nearly $950 million over the past two days of the week.
Bitcoin slips to $95,000, institutions buy the dip
Bitcoin has erased nearly 12% of its value from its all-time high and is hovering around the $95,000 level on Monday.
Some major players in the industry have decided to increase their holdings amid the recent drop in prices. Japanese investment company Metaplanet Inc. said on Monday that she spent nearly $60 million to buy 620 BTC. The government of El Salvador also accumulated 29 BTC over the past week, pushing its Bitcoin reserve to 5,995 BTC, worth over $560 million, according to data from Lookonchain.
Institutional demand saw sharp moves last week. Spot ETFs poured $1.4 billion into Bitcoin early last week, but pulled out nearly $950 million over the past two days as a sharp correction unfolded.
Alternative.me’s Bitcoin Fear and Greed Index reads “Greed” after BTC’s recent pullback. This shows that sentiment among traders remains generally positive even as the largest cryptocurrency consolidates.
Bitcoin Technical Analysis: Momentum Indicators Remain Bullish
BTC suffered its biggest weekly drop since President-elect Donald Trump’s election victory in early November, as seen on the BTC/USDT weekly price chart.
The Relative Strength Index (RSI) is at 67, steady below the overbought mark at 70. The Moving Average Convergence Divergence (MACD), a key momentum indicator, flashes a green histogram bar above the neutral line. This shows an underlying positive momentum in the BTC price trend on a weekly time frame.
If Bitcoin tries to recover, the $100,000 milestone acts as the first resistance. Then comes the all-time record of $108,353.
BTC/USDT weekly price chart
In case the correction continues, Bitcoin could find the first support at the upper limit of the disequilibrium zone, which stretches between $81,500 and $89,376.
VanEck’s report makes key revelations about Bitcoin’s strategic reserves
According to a research report published by ETF fund manager VanEck, if the US government were to follow through on a plan to acquire 1 million BTC, the reserves could represent 35% of the national debt by 2049.
According to the researchers, this would offset $42 trillion in liabilities assuming the US debt increases to 5.0% of the $37 trillion base between 2025-2049 and Bitcoin increases to 25% annually over the same period from its initial value of 200,000 dollars.
The report describes how the US could create a national reserve of BTC even without legislation and make it easier to acquire Bitcoin.
“We believe that the US should avoid repeating Germany’s mistake. While critics like Peter Schiff have urged President Biden to sell U.S. Bitcoin before Trump’s inauguration, a well-managed reserve could provide significant long-term value,” the analysts said.
