El Salvador Buys 7 BTC, Bitcoin Holds Above $94,297 Despite 0.75% Dip

Bitcoin has been holding steady at around $94,297, with a slight 24-hour dip of 0.75%. Despite this minor fluctuation, the overall sentiment remains bullish, supported by a market cap nearing $1.87 trillion and a circulating supply of 19.85 million BTC out of a 21 million cap. The cryptocurrency is currently hovering near key support zones, notably the 50-day Exponential Moving Average (EMA) at $94,239 and a rising trendline around $93,760. These levels could serve as a springboard for a renewed rally toward $95,643 and potentially $96,850, provided buyers defend these levels.

El Salvador continues to bolster its Bitcoin holdings, quietly acquiring an additional 7 BTC worth $650,000. This move comes despite the country's adherence to a $1.4 billion loan deal with the International Monetary Fund (IMF), which discourages further accumulation of Bitcoin. According to blockchain expert Anndy Lian, El Salvador is leveraging "non-governmental mechanisms" to continue buying Bitcoin while staying within IMF terms. This strategy represents a delicate balance, integrating Bitcoin into the national financial framework without breaching global obligations. The country's continued support for Bitcoin, despite IMF skepticism, strengthens the cryptocurrency's credibility and could inspire other nations to consider Bitcoin as a strategic reserve asset.

Michael Saylor, co-founder of Strategy, has hinted at another massive Bitcoin purchase, potentially between $1.4 billion and $1.6 billion, just a week after acquiring $555 million worth of BTC at an average of $84,785. Strategy now holds 538,200 BTC, valued over $50.5 billion. This surge in demand is supported by an increase in whale wallets, which jumped from 124,000 to 137,600 in April. Additionally, spot Bitcoin ETFs saw nearly $3 billion in weekly inflows, the second-highest ever recorded. This broad institutional participation not only boosts confidence but also reduces the circulating supply, pushing prices higher over time.

The underlying demand for Bitcoin remains robust, driven by sovereign accumulation, institutional inflows, and whale purchases. If Bitcoin holds above key support levels, it may be poised for a fresh leg higher. Investors should closely monitor trendline behavior and ETF flows for the next move. The momentum indicators, such as the Moving Average Convergence Divergence (MACD), are cooling but have not broken down, suggesting consolidation rather than a collapse. This bullish setup is further reinforced by the tightening supply due to ETF demand, which could drive prices higher in the long term.