Bitcoin News Today: El Salvador's Bitcoin Buy Spree Defies $1.7B Crypto Liquidations as Market Splits

The cryptocurrency market is reeling from a week of turbulence, with over $1.7 billion in liquidations as Bitcoin (BTC) and Ethereum (ETH) struggle to stabilize near critical support levels. The sell-off, fueled by macroeconomic anxieties and leveraged trading collapses, has drawn sharp buying from sovereign actors and institutional players, highlighting diverging strategies in a volatile landscape.

El Salvador's Bitcoin accumulation strategy has intensified amid the downturn, with the nation adding $101 million worth of BTC to its strategic reserves this week. President Nayib Bukele confirmed the purchase of 1,098.19 BTC over seven days, bringing total holdings to 7,474.37 BTC valued at $688 million. The Central American nation has maintained a daily 1-BTC-buy policy since 2022, defying warnings from the IMF and other institutions. Bitcoin Magazine's data shows BTC trading near $91,768, up slightly from a 4.9% 24-hour drop earlier in the week. Short-term holders liquidated 148,000 BTC at a loss-the-largest capitulation since April-while analysts note the selling pattern mirrors prior market tops.

The broader market turmoil has also impacted Ethereum, which fell below $3,000 for the first time in four months. FG Nexus, a major Ethereum treasury firm, sold nearly 11,000 ETH to fund a share buyback, exacerbating downward pressure. Meanwhile, BitMine Immersion Technologies added 54,156 ETH to its holdings, though the firm disclosed $3 billion in unrealized losses on its Ethereum stash. Ethereum's price action has been further complicated by cross-chain fragmentation, prompting the Ethereum Foundation's Account Abstraction team to outline plans for an Interop Layer (EIL) to unify Layer 2 networks.

Institutional players are also recalibrating. U.S. spot Bitcoin ETFs recorded a record $3.79 billion in outflows in November, with BlackRock's IBIT alone losing $2 billion this month. The selloff coincided with broader risk-off sentiment, as the S&P 500 and Nasdaq fell over 1.5% amid concerns about delayed Fed data and a potential delay in rate cuts. However, some projects are capitalizing on the dip. Bitcoin Munari, a Solana-based token, announced a presale roadmap targeting $0.35 per token, with plans to migrate to a standalone Layer 1 blockchain by 2027. Matador Technologies, another Bitcoin-focused firm, reported a 767% increase in BTC holdings since December 2024, now holding 175 BTC as it expands listings on global exchanges.

The market's near-term outlook remains uncertain. While some analysts view current levels as a "normal correction" in a longer uptrend according to analysis, others warn of prolonged weakness if macroeconomic fears persist. Bitcoin's ability to hold above $80,000 will be critical, with El Salvador's purchases potentially serving as a macro tailwind if the asset stabilizes according to market data. For now, the battle between accumulation and capitulation defines a market at a crossroads.