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Why Is Bitcoin Going Down? IMF Urges El Salvador to Stop BTC Purchases and Mining – CoinSpectator – Real-time Cryptocurrency News

Mar 04, 2025 - coinspectator.com
The International Monetary Fund (IMF) has advised El Salvador to halt its Bitcoin purchases and mining activities as part of the conditions for a $1.4 billion loan agreement. This recommendation is aimed at addressing macroeconomic imbalances and fiscal deficits in the country. President Nayib Bukele, who initially resisted the IMF's concerns, has agreed to modify the Bitcoin Law and cease public sector involvement with the cryptocurrency. El Salvador must comply with these recommendations by December 2025, including disclosing all Bitcoin holdings by March and undergoing a second review in June.

Meanwhile, Bitcoin's price is experiencing a bearish trend, with BTCUSD testing a critical support level at 82,450 after being rejected at 95,000. Traders are closely monitoring this level for potential price direction. DeepSeek AI has outlined three potential scenarios for Bitcoin in 2025, with a base case of trading between $100,000 and $150,000, a bullish scenario reaching $350,000, and a black swan scenario peaking at $500,000. These projections are based on anticipated institutional adoption and broader blockchain acceptance, though they come with inherent uncertainty and volatility.

Key takeaways:

  • The IMF has urged El Salvador to stop accumulating Bitcoin as part of the conditions for a $1.4 billion loan agreement.
  • President Nayib Bukele has agreed to cease public Bitcoin involvement and aims to address structural economic challenges under the IMF-supported program.
  • BTCUSD is currently testing a critical support level at 82,450, with potential for either a continued bearish trend or a bullish reversal.
  • DeepSeek AI outlines three potential scenarios for Bitcoin in 2025, with prices ranging from $100,000 to $500,000 based on varying levels of adoption and acceptance.
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