Recent market turbulence has led to a noticeable slowdown among publicly traded companies purchasing Bitcoin and Ethereum, signaling increased caution amid volatile crypto markets. While some firms have pulled back their accumulation efforts, others continue to maintain their holdings, reflecting a nuanced landscape for crypto treasury strategies.
Key Market Observations
- •Crypto treasury companies have significantly reduced their Bitcoin and Ethereum purchases following October’s market decline.
- •Despite a broad sell-off, some firms like BitMine continue consistent buying, indicating selective confidence in the sector.
- •The overall slowdown suggests caution from large crypto holders amid declining asset values and market volatility.
- •Bitcoin’s price has fluctuated below $105,000 but recently recovered to around $114,250, with Ethereum experiencing a similar trend.
- •Experts warn that if big corporate buyers pause, the current buying momentum could weaken further.
Institutional Caution in Crypto Accumulation
Public companies involved in buying and holding cryptocurrencies have exhibited a marked reduction in their accumulation activities following a sharp market correction in October. This shift points to a cooling sentiment among institutional crypto investors, whose confidence appears to be waning amid broader market uncertainties.
According to Coinbase Institutional’s head of investment research, David Duong, crypto treasury (DAT) firms have largely ceased engaging in Bitcoin purchases post-October 10. “Over the last two weeks, Bitcoin buying by DATs has fallen to near the lowest levels seen this year and has not shown signs of recovery, even on days with positive market movements,” he explained.
“The slowdown in crypto buying underscores a cautious stance among large holders, especially after the recent leverage washout,” Duong noted.
Market Price Movements
Bitcoin sharply declined from around $121,500 to below $110,500 during the October market dip, with recent lows dropping below $105,000. Although the price has since rebounded to approximately $114,250, the overall trend indicates persistent volatility. Ethereum experienced a parallel decline of over 15%, reaching a low of $3,686 before bouncing back slightly to around $4,130.
BitMine Remains a Consistent Buyer
Despite the widespread pullback, BitMine Immersion Technologies has been one of the few firms actively increasing their Ethereum holdings, spending over $1.9 billion since October 10 to acquire nearly 483,000 ETH. Duong highlights that while such buying activity by major firms indicates some continued confidence, the overall sector remains cautious.
He warns, “If large players slow or halt their purchases, the current corporate bid could diminish quickly.” This cautious stance suggests that the market could become even more fragile if key institutional buyers retreat further.
The recent seven-day period saw positive net buying for ETH treasuries, driven largely by BitMine’s persistent activity and contributions from smaller funds. However, Duong emphasizes that this momentum might not last if the big buyers pause their purchases, increasing overall market fragility.
“Given the current environment, a more cautious positioning in the short term is advisable,” he states. “When the largest discretionary balance sheets sit on the sidelines, the market’s stability becomes more vulnerable.”