Bitcoin Reclaims $104,000 Mark Amid Corporate Accumulation and IMF Concerns

Bitcoin (BTC) has shown resilience, reclaiming the $104,000 mark on Saturday after experiencing an intraday low of $103,361. The cryptocurrency reached an intraday high of $104,896 before settling at its current levels. Over the past 24 hours, BTC has seen a nearly 1% increase, trading around $104,612, as it aims to build momentum and surpass the $105,000 threshold.

Michael Saylor’s Bitcoin accumulation strategy has gained traction among various firms, including media companies, multinational conglomerates, and meme stock companies. This week, Trump Media announced plans to raise $2.5 billion to fund Bitcoin purchases. GameStop also allocated $500 million towards Bitcoin, while Tether, Softbank, and Strike’s Jack Mallers launched TwentyOne, a Bitcoin-native public company with over 42,000 BTC on its balance sheet. However, the market has been skeptical, with Trump Media shares plunging 20% and GameStop down 17% since the announcements. Michael Saylor, executive chairman of Strategy, commented on the market's reaction, stating that the short-term dynamics do not overshadow the long-term popularity of Bitcoin on corporate balance sheets. He also noted the growing interest in Bitcoin treasury strategies globally.

The International Monetary Fund (IMF) has expressed concerns over Pakistan’s plan to allocate 2000 megawatts of electricity for Bitcoin mining and AI data centers. The IMF questioned the legality of crypto mining and power allocations, given the country's chronic energy shortages and fiscal pressures. The IMF was not consulted prior to the announcement, leading to questions about the legal standing of cryptocurrencies in Pakistan and potential impacts on resource distribution and power tariffs. The economic team in Pakistan is facing stiff questions, and this move has added complexities to the ongoing negotiations with the IMF.

Bitcoin has been on a decline from its recent highs, dipping below $105,000 as sellers gained control. Analysts predict a deeper pullback to $100,000 before bulls regain momentum. The cryptocurrency is almost $8,000 below its peak of $111,970. On-chain indicators suggest a slowdown in momentum, with some demand metrics reaching a short-term top. CryptoQuant noted that Bitcoin’s demand growth in the last 30 days is near the previous top, and whale-held Bitcoin balances have increased, often preceding a slowdown in accumulation.

Bitcoin reached a new all-time high on Thursday, May 22, with an intraday high of $111,970 before settling at $111,589. Since then, the price has declined nearly 4% to $107,356. Over the weekend, BTC recovered, registering increases of 0.46% on Saturday and 1.16% on Sunday to settle at $109,103. The price saw a marginal increase on Monday but dropped 0.46% on Tuesday, settling at $108,954. Sellers retained control on Wednesday, with BTC falling 0.03% and settling at $107,834. Bearish sentiment intensified on Thursday as the price fell over 2%, slipping below the 20-day SMA and settling at $105,662. On Friday, BTC continued to decline, falling 1.51% and settling at $104,067. Despite the selling pressure, the price recovered on Saturday, rising 0.69% to $104,784. The current session sees BTC marginally down, with the MACD indicating that sellers have the upper hand. If the downtrend continues, BTC could test the $100,000 support level before bouncing back.