Trump Media's ambitious $2 billion Bitcoin treasury purchase at $118,000 is now showing significant unrealized losses as the cryptocurrency struggles to maintain momentum above the critical $100,000 threshold. With Bitcoin testing its 50-week exponential moving average, market participants are closely watching whether key technical support levels will hold or give way to further downside.
Trump Media's high-profile entry into Bitcoin treasury management is facing its first major test as the cryptocurrency market enters a period of consolidation. The company's $2 billion acquisition, made at an average price of $118,000 per Bitcoin, is now underwater as BTC trades below the six-figure mark, raising questions about the timing and strategy behind corporate Bitcoin adoption.
The current price action has brought Bitcoin to a critical juncture at the 50-week exponential moving average (EMA), currently situated at $100,887. This technical indicator has historically served as a significant support level during bull market corrections, making its defense crucial for maintaining the broader uptrend. A decisive break below this level could signal a deeper retracement and intensify pressure on recent corporate buyers.
Market analysts are closely monitoring a resistance zone between $106,000 and $120,000, which now represents a formidable barrier for Bitcoin's recovery. This range encompasses Trump Media's entry point, meaning the company would need to see BTC reclaim these levels to return to profitability on its holdings. The psychological impact of a major institutional buyer sitting on losses could influence sentiment across the broader corporate adoption landscape.
Onchain metrics provide mixed signals about near-term direction. While long-term holder accumulation remains strong, suggesting conviction among veteran investors, short-term holders are showing signs of capitulation. Exchange outflows have slowed compared to previous months, indicating a pause in institutional accumulation that characterized much of the rally to all-time highs.
The Trump Media acquisition represents one of the largest single corporate Bitcoin purchases in recent history, placing the company among the ranks of MicroStrategy and other corporate treasury adopters. However, the timing—near local price peaks—highlights the volatility risks associated with Bitcoin treasury strategies, even for well-capitalized entities.
For Bitcoin to alleviate pressure on Trump Media's position, a sustained reclaim of the $110,000 level would be necessary, followed by a break above the $120,000 resistance. Until then, the company's Bitcoin experiment serves as a real-time case study in the challenges of timing cryptocurrency market entries, regardless of long-term conviction in the asset class.