Corporate Treasury Buying Spree Loses Momentum
The summer’s massive crypto rally was partly fueled by aggressive Bitcoin and Ethereum purchases by corporate treasuries. That trend has cooled dramatically over the past two months, removing a key source of market demand.
According to data from CryptoQuant, Bitcoin treasury purchases fell to just 12,600 BTC in August and 15,500 BTC so far this month—less than half of July’s total. This steep decline has coincided with softer market prices across major digital assets.
Demand Floor Weakens as Treasury Accumulation Slows
Analysts warn that slowing treasury activity removes a critical demand floor that previously supported prices. Joe DiPasquale of BitBull Capital noted that reduced buying undermines confidence in the “balance-sheet-as-strategy” narrative embraced by many firms.
Additionally, forced liquidations in derivatives markets have amplified price declines. This feedback loop is pressuring both cryptocurrencies and related equities, creating a more fragile trading environment for investors.
Bitcoin Price Drops Below Key Support Levels
Bitcoin’s price has fallen over 5% in the past week, recently trading near $109,400. It briefly dipped below $109,000 for the first time since early September. Ethereum and other major altcoins have also suffered steep declines, reflecting waning market optimism.
This weakness has left traders increasingly bearish on near-term milestones. Predictions on Myriad now show a 68% probability that Bitcoin will dip to $105,000 before making a new all-time high around $125,000.
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Market Exposure to Volatility Increases Without Treasury Buys
Michael McCluskey, CEO of Sologenic, explained that corporate demand was a major factor propping up prices earlier in the year. With that demand slowing, markets are now more vulnerable to volatility and sharp sell-offs.
He noted that steady treasury accumulations provided consistent price support. Their absence exposes crypto assets to more pronounced swings, particularly in uncertain macroeconomic conditions.
Treasury-Linked Equities Experience Sharp Declines
Several companies tied to crypto treasury strategies have seen their share prices plunge. Solana treasury Helius Medical Technologies dropped 38% last week, while Ethereum-focused BitMine Immersion declined more than 13%.
Bitcoin-focused firms Strategy and Metaplanet each fell about 9%, despite Metaplanet’s recent purchase of over 5,400 BTC. Investor sentiment toward treasury strategies has cooled amid weaker crypto performance and regulatory scrutiny.
Regulators Examine Unusual Trading Around Treasury Announcements
U.S. regulators are now investigating suspicious trading activity preceding corporate crypto treasury announcements. The SEC and FINRA have contacted multiple companies after identifying unusual volume spikes and share price jumps.
The Wall Street Journal reported that this review covered more than 200 firms, with only a portion flagged. Increased regulatory attention could make some companies more cautious about publicizing treasury strategies, further dampening market enthusiasm.
Analysts Still See Potential for Year-End Rally
Despite short-term headwinds, some analysts remain optimistic. Gerry O’Shea of Hashdex believes Bitcoin could still reach $140,000 by year’s end, supported by corporate treasury adoption.
He argued that while volatility and regulatory scrutiny may slow activity temporarily, corporate demand will continue to play a key role in driving future rallies. Treasury participation, even at a reduced pace, remains a crucial market catalyst.
Volatility Likely to Persist as Demand Cools
The slowdown in treasury accumulation highlights shifting market dynamics. With less institutional buying, crypto assets face heightened sensitivity to macroeconomic trends, derivatives liquidations, and investor sentiment swings.
Analysts expect volatility to remain elevated in the near term. Whether treasuries resume their aggressive buying or maintain a cautious stance could shape Bitcoin and Ethereum’s trajectory heading into the end of 2025.
