Public companies that buy and hold Bitcoin and Ether have largely stopped accumulating since the market crashed earlier in October, a move that signaled a recent end to confidence.
Digital Asset Treasury (DAT) companies that buy bitcoin (BTC) “The post-oct 10 drawdown has generally been ghosted and has yet to reengage,” Coinbase Institutional Global Head of Investment Research David Duong said on Sunday.
“Over the past two weeks, BTC buying via DATs has fallen to near year-to-date lows and has not recovered significantly, even on green days,” he added.
The buying of crypto signals that the sector is cautious, as the values of many cryptos Treasury Companies have slipped toward the value of their property holdings, while their Stock prices have cooled from their massive rally.
Bitcoin fell 9% in the October 10 to October 11 period, coming down from the surroundings $121,500 with lows below $110,500. It fell to lows below $105,000 this month but has since recovered to $114,250, trading flat in the past 24 hours.
Bitmine is still buying
Duong said the buying lull from bitcoin buying firms is significant because they are “typically heavy hitters with deep pockets,” but their pullback since Oct. 10 “signals limited confidence on their part.”
The slowdown in buying “reflects some caution from the big players to post a washout, even at current ‘support’ levels,” he added.
Duong stated that the ether (Eth) Treasury Company Bitmine Immersion Technologies has been the “only consistent buyer” since the market crash, incl Data It shows spent more than $ 1.9 billion Since October 10 to buy almost 483,000 ETH.
Ether fell alongside Bitcoin earlier this month, dropping more than 15% to a low of $3,686 between October 10 and 11, but has since recovered slightly to $4,130.
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Bitmine’s purchase, along with “smaller contributions from other funds,” built the company’s seven-day total of ETH Treasury purchases to the positive, Duong said.
However, he added that if the company “slows down or stops, we are concerned that the bright corporate bid could be lost.”
“We think this means more cautious positioning in the short term,” Duong said. “The market appears more fragile when the largest discretionary balance sheets are sidelined.”
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