- Bitcoin dropped below $94,000 but recovered above $95,000 amid high market volatility.
- Strategy announced a $2 billion Bitcoin acquisition.
- Institutional investors continue expanding Bitcoin exposure despite short-term price declines.
Bitcoin prices plummeted below $94,000 before recovering to surpass $95,000. Bitcoin dropped 10% during the past week while facing a significant price decline. Bitcoin’s price decline challenges the positive outlook that emerged from Bitcoin spot ETF approvals and recent political developments.
Market sentiment has declined which leads investors to maintain a careful approach. Bitcoin continues to face difficulties due to rising market volatility and increased sell-off activity. Market participants watch important support areas as they attempt to determine Bitcoin’s upcoming price movement.
Strategy Plans a $2 Billion Bitcoin Purchase
Strategy, previously known as MicroStrategy, announced plans to raise $2 billion for Bitcoin purchases. The company will issue 0% convertible senior notes to fund the acquisition. This decision reinforces Strategy’s long-term belief in Bitcoin’s potential growth.
The company currently holds 478,740 BTC, valued at over $45 billion. A greenshoe option could allow Strategy to buy an additional $300 million in Bitcoin. This move aligns with its 21/21 Plan, which targets $42 billion in investments over three years.
Institutional Investors Increase Bitcoin Exposure
Institutions demonstrate sustained interest in Bitcoin despite near-term price variations. Major financial institutions show their growing faith in Bitcoin through expanding their Bitcoin holdings. Standard Chartered analyst Geoff Kendrick maintained his $500,000 Bitcoin prediction following observations of institutional market increase.
Goldman Sachs increased its Bitcoin ETF investments, while Abu Dhabi’s sovereign wealth fund made its first Bitcoin ETF purchase. Hedge funds and banks are also allocating more funds to Bitcoin. These moves highlight Bitcoin’s growing acceptance among major institutions.
Semler Scientific reported holding 3,192 BTC, worth over $300 million. The company applied the new FASB fair value accounting rule, marking up its Bitcoin holdings by $28.85 million in Q4 2024. TThe growing corporate interest in Bitcoin demonstrates increasing optimism about its future capabilities.
Technical Indicators Signal Potential Weakness
Analysts have identified technical patterns for Bitcoin. BTC has tested the $95,000 support level 5 times in the past two weeks. This repeated testing suggests potential weakness at this critical price point.
On-chain data from analyst Maartunn shows Bitcoin’s inter-exchange flow pulse turned negative for the first time since Q3 2024. Bitcoin futures markets recorded their highest long-position liquidations in two years, reaching 25% dominance. These signals indicate a declining risk appetite among investors.
Traders are watching key support levels closely. The immediate support level is $93,400, with a secondary zone between $91,130 and $88,909. A critical support area lies between $81,699 and $85,160, while the CME gap zone ranges from $77,000 to $80,000.
Although short-term volatility remains high, Bitcoin’s long-term outlook appears strong. Strategy’s $2 billion purchase underscores corporate confidence in the asset. Investors should watch the $95,000 level closely, as a drop below could trigger further declines.
