Bitcoin’s price volatility is once again in the spotlight as El Salvador’s President, Nayib Bukele, hints at accumulating more BTC amid a potential price dip. This comes in the wake of the U.S. government’s liquidation of 69,370 BTC, worth $6.7 billion, seized from the Silk Road marketplace. With Bitcoin currently facing heavy selling pressure, the question arises—is BTC heading below $90,000? And if so, should investors follow Bukele’s lead and buy the dip?
Bukele’s Strategy: Accumulate on Weakness
President Bukele has long been a vocal supporter of Bitcoin as a national treasury asset, making El Salvador the first country in the world to adopt BTC as legal tender in 2021. His administration has continued to stack BTC during price dips, often purchasing in increments and holding the assets in the country’s treasury.
Following the U.S. Department of Justice’s decision to approve the sale of seized Bitcoin, Bukele took to X (formerly Twitter), hinting that the price drop presents another buying opportunity. This aligns with his previous “buy the dip” approach, reinforcing his confidence in Bitcoin’s long-term value.
Bitcoin Under Pressure—Will It Drop Below $90K?
BTC has been on a downward trend since hitting a weekly high of $102,464, now trading around $94,061, down 1.26% in the last 24 hours. The market cap and trading volume have also declined, suggesting waning bullish momentum.
Key factors influencing the current price action:
📉 US Government BTC Sell-Off – The DOJ-approved liquidation of $6.7 billion worth of Bitcoin has triggered market anxiety, leading to increased selling pressure.
📉 Short-Term Holders Panic Selling – On-chain data shows 23,200 BTC were moved to exchanges at a loss, indicating panic-driven exits.
📉 Declining Funding Rates – The derivatives market shows weak demand, reinforcing bearish sentiment among traders.
A Tale of Two Perspectives: Panic or Opportunity?
Despite the sell-off, some key players remain optimistic. Billionaire investor Robert Kiyosaki sees this downturn as a chance to accumulate more BTC at lower prices, echoing Bukele’s sentiments. Meanwhile, former BitMEX CEO Arthur Hayes predicts a $612 billion liquidity injection in Q1 2025, which could potentially fuel a strong Bitcoin recovery.
Market participants now face two potential paths:
➡️ Short-term holders may cut losses, fearing further price declines.
➡️ Long-term believers may accumulate BTC, treating this dip as a strategic buying opportunity.
Will Bitcoin Rebound?
The current market trend suggests that BTC could continue its downward slide before stabilizing. However, historical trends indicate that major dips—especially following forced liquidations—are often followed by strong rebounds.
Final Thoughts
Bukele’s latest hint at increasing El Salvador’s Bitcoin reserves suggests continued confidence in BTC’s long-term trajectory. As governments, institutions, and whales position themselves, retail investors must decide whether to HODL, buy the dip, or exit the market.
💬 What’s your strategy? Are you buying the dip like Bukele, or are you waiting for further declines? Let’s discuss!
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