Bitcoin Steady at $105K as Meta Rejects BTC Proposal and Exchange Reserves Hit All-Time Low%%page%% - Benzinga

Bitcoin BTC/USD is trading at $105,289.26, up 0.86% in the past day, after losing 4.23% in a week. Over the past month, Bitcoin has managed a rebound of 9.39%. The price was impacted by Meta Platforms Inc META, which created uncertainty around the token by rejecting the proposal to create a Bitcoin treasury.

Meta shareholders collectively voted down the proposal to add Bitcoin to the company’s balance sheet. The proposal was submitted by Bitcoin advocate, Ethan Peck, and only got 0.08% votes, approximately 3.92 million shares of nearly 5 billion. With 61% of the voting shares, CEO Mark Zuckerberg holds enough voting power to influence proposals without broader shareholder support.

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Peck, who made similar proposals to Microsoft Corp MSFT and Amazon.com Inc AMZN, contended that Meta’s $72 billion of cash reserves are eroding value because of inflation and low-yielding bonds. He believed that Bitcoin has the potential to be a hedge and long-term store of value.

Though Meta’s board didn’t publicly express any resistance to the offer, the one-sided vote indicates there isn’t much support from leadership or shareholders to go towards crypto, even while rivals such as Strategy Inc MSTR and Tesla Inc TSLA are increasing their exposure to Bitcoin.

According to Crypto news, Bitcoin exchange reserves have reached an all-time low, with fewer than 2.5 million BTC stored on centralized exchanges. The trend is considered bullish, as lower exchange balances show investors have the intention to hold long term, which limits selling pressure in the short term. The mismatch between falling supply and constant demand can create more volatility.

Last month, Spot Bitcoin ETFs received $5.23 billion in flows, and institutional investor wallets between 1,000 and 10,000 BTC are accumulating steadily. Strategy bought more than 7,000 BTC in May, taking it to a total of 576,230 BTC at an average price of just under $70,000. GameStop Corp GME and Swedish company H100 Group AB HOGPF have recently joined the list of firms with Bitcoin on their balance sheets.

Bitcoin is sitting above key moving averages, and is unable to recapture short-term momentum levels. The RSI is neutral, and the MACD is bearish. Bitcoin needs to reclaim its bullish ground by breaking above $106,000. A drop to $98,000 or even $94,000 is possible if selling pressure continues.

Pakistan hit the headlines after a government official declared that the country will establish a national Bitcoin reserve and introduce a sovereign BTC wallet. The announcement was quickly backtracked by senior financial officials, who insisted that there is no existing legislative provision for crypto adoption. The back-and-forth shows the global divide in Bitcoin policy, where some governments are welcoming digital assets, and others are still resisting.

Corporate adoption of crypto is growing, but it's not universal. With prices dwindling, there will be near-term volatility. Bitcoin is on the edge of mainstream acceptance, and speculative volatility, and only time will tell whether it gains large-scale acceptance or not.

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