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Bitcoin Treasuries Hold Back as Unrealized Losses Persist
Developing
In Short: Bitcoin corporate treasuries are sitting on paper losses and have not been active buyers, according to new research, as the market remains uncertain.
Bitcoin corporate treasuries are no longer actively buying Bitcoin (BTC) due to current unrealized losses, according to new research from FXStreet. The trend highlights the changes in sentiment accompanying Bitcoin's ongoing bear market, with investors uncertain about the cryptocurrency's price strength.
Glassnode reports that existing corporate treasuries are not seeing profitability, and a recovery to $80,500 would be necessary for them to turn a profit and reduce overhead supply. Until then, their holdings act as a ceiling for the market.
Strategy, the business intelligence company with the world's largest Bitcoin treasury, made its most recent purchase in August, adding 4,603 BTC. This marks the first acquisition in two months, indicating a pause in buying activity.
The trend also shows that buyer appetite for Bitcoin exchange-traded products remains sensitive to short-term price fluctuations, further emphasizing the market's uncertainty.
What's still developing
- “A buyer that has stopped buying and holds a paper loss is not support,” it continued.
Sources
- FXStreetlink